Tuesday, 30 June, 2020
Archr News Update
GBP TRADE THOUGHT..
If you don’t see negative rates come year end (how do they work anyway !?) and you also believe we’ll run into funding issues..
Maybe worth fading recent call richness via the L Z0 9975/100 COMBO.
This currently sits 0.05 (P) middle ref 99.85 & as per the chart attached we’ve seen a +0.5/+4.5 range for the PUT.
you could argue L U0 or RED combos price a better return BUT this is looking at no rate cuts 6 month period and funding stress year end and also fades the over saturated long strikes for negative rates.
we have already seen a similar thought as this trade with L Z0 9975/62 PS paid 1.5 3k and the L Z0 100/100.25 CS sold at 1.5 10k
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