Aug 9. The Cadillac of minivans

–New low in Russian ruble due to freshly imposed US sanctions, and the Turkish lira also continues to plunge to new lows. Strongmen of Venezuela and Turkey borrowing pages from the same playbook with plunging fx and action-movie coup attempts.  Rate trading remains lethargic in the US, with yields steady to lower yesterday.  Crude oil a large mover, plunging 2.23 to settle 66.94, testing the low from mid-July; looks to target 65 or lower.

–It’s probably here that I should include the Frankie C crossword story from the ED option pit.  Faced with the clue, Coup d’_ _ _ _ he dutifully filled in VILL, a nod to the classic Cadillac model, taking artistic license by dropping the “E”.
–US stocks hold firm, though this article (citing work from the Leuthold Group) indicates lofty valuation with respect to S&P 500 price to sales ratio.
–In option trading, there was a large exit of EDZ8 9737/9762c spread, 50k sold at 3.5.  On July 18 there was a buyer of this call spread 2x vs 2EZ 9737c 1x for 0.5.  Yesterday as the call spread was sold at 3.5, the 2EZ calls were trading 4.0, so the original package priced at a value of 3.0.  After the front call spread, 2EZ 9712/9737c 1×3 was sold at -3.0; buying back the short leg of the original package.
–News today includes Jobless Claims 220k, PPI expected +0.2 and +2.8 Core yoy.  Thirty year auction caps the auctions, following a solid 10 year yesterday.
Posted on August 10, 2018 at 5:22 am by alexmanzara · Permalink
In: Eurodollar Options

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