Images of events in Cairo and Suez are very disturbing and history is in the making. The short term effect is pushing treasuries higher probably pressuring equity markets – as this jihad like situation is spreading and the ramifications are of much more import than the dog and pony show in Davos. Don’t get me wrong they are watching the events from there but the drama and Irony is compelling.
I was hoping to declare a victory in terms of the fixed income roaring higher – it is looking very likely and there is anxiety and some flow building as the events occurring start to gain more and more traders attention. Certainly volatility is creeping up – hence strangle selling we saw earlier today – probably should be avoided. The events occuring are indeed tragic in that human lives are being lost, so keep it in perspective.
Images below telling the story today.
Looking forward:
Larger flows listed below.
| 1/28/2011 | |||||
| Screen | |||||
| Paper | B/S | 18,000 | EDH13 9750/9775 p 1X2 | flat | 9799 area |
| Floor | |||||
| Paper | B | 1,000 | EDH1 9950/9962 p 1X2 | .5 one leg | N/A |
| Paper | B | 5,000 | EOM 9750/9800/9850 p fly | 4 | N/A |
| Deutche | S | 10,000 | EDH 9962 puts | 2.75 | N/A |
| CCM | S | 3,000 | EDU9725/9800 p 1X2 | 1 | N/A |
| Paper | B | 2,000 | EDZ60/62/65 pfly w/ 65/67/70 pfly | 1 buy both | N/A |
| TJM | B | 2,000 | EOH 9887 put | 5 | N/A |
| Goldman | B | 5,000 | EDM12 9650 put | 7 | 9883/83.5 |
| Paper | S | 2,500 | EOZ 9600/9700/9800 p fly | 10.5 | N/A |
| Paper | B | 3,000 | EDZ12 9550 p | 12.5 | N/A |
| Paper | B | 10,000 | EDZ1 90/92 ps vs. 95/96 cs | 1 cs over | N/A |
| TJM | B | 10,000 | EDG13 9825 vcalls | 2 | 9800/00.5 |
| Fed Fund opts | |||||
| Paper | B | 1,000 | FFX 9981 c | 3 | N/A |
| Paper | B | 500 | FFK 9987/9993 c spread | 0.75 | N/A |
| Paper | S | 500 | FFH 9987c | 0.5 | N/A |
| 10yr. Opts | |||||
| Screen | |||||
| Paper | B/S | 5,000 | TYH118p | 0.11 | 12014.5/15 area |
| Paper | B/S | 2,000 | TYH 119/120 p spread | 0.19 | 12019.5 area |
| Floor prior to GDP | |||||
| Paper | B | 1,000 | TYH119/122.5 combo | .13 put over | 12011/12 |
| mann | B | 2,000 | TYH119p | 0.24 | 12011/12 |
| CCM | S | 1,000 | TYJ 116/122 strangle | 0.48 | 12008/09 |
| Paper | B | 3,500 | TYJ/M 116 p calendar | 0.3 | 12010/10.5 |
| mann | S | 2,000 | TYH118/119 p spread | 0.11 | 12013/13.5 |
| JP Morg | S | 500 | TYH121/122/123 c fly | 0.1 | N/A |
| Smith B | S | 2,000 | TYJ116/122 strangle | 0.47 | 12012.5/13 |
| Paper | B | 3,000 | TYH118.5/116 p diag | 0.09 | N/A |
| Paper | S | 1,000 | TYJ 116.5 put | 0.3 | 12013.5/14 |
| Paper | S | 1,000 | TYH121.5 c | 0.24 | 12014.5/15 |
| Paper | B | 1,000 | TYH122c | 0.16 | 12014/14.5 |
| Paper | S | 1,000 | TYJ118/119.5/121 Irond fly | 1.14 | 12018.5/19 |
| Paper | S | 1,000 | TYH118.5/122 combo | .05 call over | 12020/20.5 |
| Swiss B | B | 10,000 | TYH122c | 0.18 | 12019/19.5 |
| Paper | S | 500 | TYH120.5 strad | 1.42 | 12020.5/21 |
| Paper | B | 1,000 | TYH118/118.5/119.5 | 0.09 | N/A |
| Paper | B | 1,000 | TYH121c | 0.45 | 12022/22.5 |
| Mann | S | 1,000 | TYH122/123 c spread | 0.12 | 12023/23.5 |
| Paper | B | 1,500 | TYH122 c | 0.22 | 12022.5/23 |
| Paper | B | 2,000 | TYJ115.5 - TYH 119 p diag | 0.01 | ^TYM 11916 |
| mann | B | 500 | TYH118.5/119.5 p 1X2 | flat | N/A |
| Paper | S | 1,000 | TYH118.5/122 combo | .08 call over | 12024/24.5 |
| CCM | B | 1,500 | TYH124 c | 0.06 | 12100/00.5 |
| Paper | B | 1,000 | TYH122/123 c spread | .16 and .17 | 12101/02 |
| mann | B | 500 | TYH117.5 put | 0.05 | 12102/02.5 |
| Paper | S | 500 | TYH123c | 0.12 | 12031/31.5 |
| Paper | B | 1,000 | TYH119p | 0.15 | 12102/02.5 |
| Paper | B | 500 | TYH121 strad | 1.47 | 12103/03.5 |
| 30yr. | |||||
| Paper | S | 500 | 1week (exp 2/4) 123 c | 0.06 | 12002 |
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