Below are a few things to take note of from Fridays trade. One of the Major events was the completions (almost) of significant retracement levels on the equity charts. Also a Head shoulders bottom formation was close to fully realized and analysts point out that this some of the reason for the bout of selling that ensued. See chart below.
The stock price movement is troubling and did put a bid into the treasury market.
A look at option trading shows that put activity remains dominant, and also showed a fair amount of liquidation in December call options.
Check out the normal docile 5yr options had some good 2 way flow on a combo trade. Merril seemed to be playing it both ways.
Eurodollar flows were mixed but put activity still seemed dominant. I hope to have more info on gold and the dollar as analysts point out that is where the inflation - deflation argument is being staged. Gold certainly looks quite bullish and with China continuing to diversify it's holding it seems commodities should do will and the dollwr should not. It will be important for stocks to stabilize, in order for current trend towards higher interest rates hold.
10yr. options players from friday listed below. and just below that is large activity in 5yr. options.
| 287 | Bot | 750 | Z17p | 26 | 11808+-09 |
| 287 | Bot | 1500 | Z16p | 13-14 | 11807+-11 |
| 287 | Bot | 1500 | F09/10/12p Fly | 5 | 11811-15 |
| 355 | Bot | 2000 | Z21c | 4 | 11806+-07 |
| 355 | Bot | 2000 | Z+17/-18p 2x1 | 4 | 11817-19 |
| 374 | Bot | 750 | Z16p | 14 | 11807+-08 |
| 415 | Bot | 7500 | Z16/16+/17+p Fly | 10 | 11812-14 |
| 684 | Bot | 1000 | Z15p | 6-7 | 11817-17+ |
| 685 | Bot | 100/900 | F18c | 58/59 | ^H11702+/^H11703 |
| 685 | Bot | 500 | Z20c | 13 | ^Z11811 |
| 690 | Bot | 1000 | Z116p | 15 | 11803+-05+ |
| 714 | Bot | 300 | Z16+/19+ Combo | 3 | ^Z11804 |
| 714 | Bot | 500 | Z19/20+c 1x2 | 16 | 11804-04+ |
| 714 | Bot | 2000/4000/1000 | Z+18p Z-16+p Z+15p | 45/18/7 | 11808-09 |
| 714 | Bot | 2000 | Z19+c | 19 | ^Z11807 |
| 714 | Bot | 500 | F18+c | 48 | ^H11607+ |
| 714 | Bot | 1500 | Z19+c | 25 | ^Z11816+ |
| 714 | Bot | 2000 | Z+17+p/-19+c Combo | 7 | ^Z11814+ |
| 714 | Bot | 1000 | Z20c | 17 | ^Z11818 |
| 714 | Bot | 500 | Z+16+p/-19+c Combo | 3 | ^Z11804 |
| 714 | Bot | 1500 | Z18p | 47 | ^Z11806+ |
| 714 | Bot | 1000 | Z19+c | 22 | ^Z11812+ |
| 737 | Bot | 500 | Z16+/17/17+p Fly | 2 | 11813+-14 |
| 825 | Bot | 5000 | H21c | 33 | 11811-13 |
| 830 | Bot | 3600 | Z16+/18p | 28 | 11806+-07 |
| 560 | Sold | 2000 | Z19c | 32-34 | 11810-14+ |
| 684 | Sold | 5000 | H120c | 46 | ^H11628/^H11629 |
| 684 | Sold | 500 | H20c | 49 | ^H11702 |
| 685 | Sold | 1000 | H13p/21c Combo | 15 | ^H11700 |
| 685 | Sold | 2000 | H19c | 109 | ^H11704+ |
| 685 | Sold | 1000 | H12+p/20+c Combo | 15 | ^H11615+ |
| 714 | Sold | 500 | Z19+c | 22 | ^Z11812+ |
| 732 | Sold | 2000 | H18c | 135 | 11816+-17+ |
| Local | Trade | 800 | Z16+/17/17+/18p Condor | 4 | 11814+-15 |
| Local | Trade | 500 | Z20/21/22c Tree | 7 | 11805-05+ |
| 560 | Bot | 5000 | Z17c | 14 | |
| 560 | Bot | 7500 | Z-15/+17 Combo | 1,3 | |
| 660 | Bot | 1000 | Z16+p | 47 | ^11604 |
| 560 | Sold | 1000 | Z15p | 11-12.5 | |
| 560 | Sold | 8000 | Z+15/-17 Combo | 1 | ^11601 |
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