Jan 28. Ruh roh

–State of the Union speech tonight. “We need to show the American people that we can get something done,” Dan Pfeiffer, a senior White House adviser, told CNN. Ruh-roh. From the Washington Post: “Just 37 percent say they have either a good amount or a great deal of confidence in the president to make the right decisions for the country’s future, while 63 percent say they do not.”  I think I’ll watch an old Columbo rerun instead.

–Stocks fought back from early weakness, though futures took another late tumble on AAPL’s earnings release as future growth prospects appear sketchy. AAPL -8% after hrs. Interest rate futures closed a bit lower, with green pack again the weakest, down 4.375 bps.  However, there was notable put spread selling in dollars: 20k 0EH 9950/9925/9912p fly sold on exit.  50k 2EJ 9812/9787ps sold (appears to be exit as 78p OI fell 42k, though 81p +19k).  25k each 2EM 9800/9775ps and 9800/9762ps sold as new positions.
–Also for the first time, a green midcurve atm straddle settled above blue. 2EZ 97.75^ settled 87 while 3EZ 96.875 settled 86.5 (this according to BBG though prelim CME sheets don’t show open interest in 9687 strike; 9675^ settled 87.5).
–Durable Goods today expected +1.6.  Two year auction as well.

Posted on January 28, 2014 at 5:22 am by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply