May 18.

Euro rebounded from new lows Sunday night as selling pressure fizzled out.  Stocks followed the same pattern.  However, copper and crude oil were crushed, with copper down around 19 cents.  Both of these industrial commodities neared lows set in February of this year.  As a comparison, SPM which was trading 1135 late yesterday was as low as 1050 to 1060 during last February’s swoon.

–A few big trades in options.  TYU 122c continue to be sold, about 7k yesterday.  Midcurve Dec 9875/9900c 1×2 was bought about 35k yesterday for 1.5, rolling down longs in the 9900c.  EDU 9925/9950c spd bought for 14.5 in size of 20k, also appears to be a roll down in strike.

–Today’s news includes Housing Starts, expected 650k, and PPI expected +0.1% both headline and Core.

–Interesting “chart of the day” on Bloomberg shows that as % of GDP, household debt in Greece is less than it is in Germany, while public debt is, of course, much worse. 

–While several markets, (stocks, euro) appear to have extingushed the crisis selling (for now), EDM0 was trading 9940 late versus final settlement in May dollars of 9954.  Perceptions of funding tightness remain…

Posted on May 30, 2010 at 3:34 pm by alexmanzara · Permalink
In: Eurodollar Options

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