Trades we are monitoring today. Dec20 Eurodollar skew has been on our radar for a while now, with our first trade idea being to buy the EDZ0 98.875/99.25/99.625 Call Fly, that trade still looks cheap.
Futures edged higher for the majority of the day on a quiet session with no economic numbers and no major Twitter bombs about China.
Trades we are monitoring today. Selling Puts in Eurodoolars makes a lot of sense at these Vol levels, but paying sky-high for Calls doesn’t, Market Makers aren’t giving much away.
Futures put in their low early in the session, then proceeded to march higher over the course of the trading day. Second-tier economic numbers didn’t do much to influence direction. Once again the market was more in tune with trade war rhetoric than economic data.
Interest Rate futures popped higher on tough rhetoric out of China earlier in the day, as market participants waited on Powell's comments.
From the School of Redundancy School, the action was muted again today as players wait on Powell tomorrow. Recent action has been dominated by options relating to the EDZ9 expiration.
Trades we are monitoring today. Implied Volatility play between USV and TYV
Today’s trading volume is light with better volumes than the beginning of the week. Futures lower all day, slightly higher after FOMC minutes. Main trades all involved October (EDV9) and December (EDZ9) expirations.
A quiet overnight session and a muted day session saw futures drift higher on a lack of economic numbers as traders look forward to the end of the week. The focus seemed to be on adding to or establishing dovish positions.
Trades we are monitoring today. Nov Eurodollar Iron Fly looks full value.