In the 10yr. sector flows were on the bearish side yesterday and mixed to bearish today. In the diagram I highlight continued selling of Mar. calls. There was a large buyer of Jan. 121.5 calls today, 10K were taken at 4 and 5 ticks with mar. futures trading around 11815 area. Floor sources indicate this could be a hedge against the short Mar. call position.
This by no means is the only action going on. Selling option premium is expensive and certainly risky. Chart formations do look bearish over all if you look at long term view, so having some kind of core short position is prudent, even with the current sideways to up sloping price actions
Some additional flows from yesterdays market
| 006 | Bot | 1000 | F+16/-15p 1x2 | 1 | 11919+-20 |
| 197 | Bot | 3500 | F16p | 10 | 11919+-20+ |
| 287 | Bot | 500 | F121c | 5 | 11913-13+ |
| 355 | Bot | 5000 | F+16+/18p vs F19+c | 19 | 11906+-07+ |
| 355 | Bot | 10000 | F15+/17p 1x2 | 10 | 11907+-08 |
| 355 | Bot | 2000 | F19/20/21c Fly | 8 | 11907+-08 |
| 560 | Bot | 3000 | H12c | 44 | |
| 660 | Bot | 1000 | G19c | 44 | ^H117&28 |
| 660 | Bot | 1000 | F+16+/18p vs F19+c | 9 | ^H11731 |
| 684 | Bot | 1000 | H18 Stdl | 261 | 11909-10+ |
| 370 | Sold | 3000 | H120c | 44 | 11914-14+ |
| 370 | Sold | 10000 | H120c | 44 | 11914-16 |
| 374 | Sold | 500 | H14p | 24-5 | |
| 560 | Sold | 2000 | F15+/17p 1x2 | 10 | 11908-09 |
| 684 | Sold | 1000 | F120c | 12 | 11914-15 |
| Local | Trade | 500 | G17p/20c Combo | 14 | 11918-18+ |
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