Obama’s speech seemed to reinforce the stalemate over current negotiations to raise the debt ceiling. Fed fund futures pictured right did slip to session lows which did trigger some trade – see last 3 trades on fed fund options flows. There are also flows indicating a QE III policy will come about as the economy looks poised to enter another recession whilst still in a depression to quote zero hedge.
The tone was set yesterday when U.S. House Majority whip Kevin McCarthy announced the house would not hold a vote on the Republican debt ceiling package. Treasury’s rallied and now have broken the down trend – meaning will have to play the upside now on any weakness. Very tough trading markets to say the least.
Well it is Friday and we are still here – let’s see what looks good for laughs – music – entertainment and so forth. Here’s one – but it does not compare to the same track on the “live in Japan recording – but this is one cool fool who never got it wrong – even when he did - http://www.youtube.com/watch?v=_GGLCaxcSh0 .
Larger flows from a.m. session listed below - a bit light on ED opts - sorry for that.
| 7/29/1931 | |||||
| TJM | B | 10,000 | EOU 9887/9912 p 1X2 | 1 | N/A |
| Fed Fund opts | |||||
| Paper | S | 1,000 | FFZ 9993c | 0.25 | 9985/85.5 |
| Paper | B | 300 | FFZ/F/G 9987/9993 cs strip | 6.75 | N/A |
| New Edge | B | 2,000 | FFQ 9981 put | 0.75 | 9988/88.5 |
| Paper | S | 1,000 | FFU9975/9981/9987 p fly | 1 | 9986.5/87 |
| Paper | S | 1,000 | FFQ9987 p | 1.5 | 9988/88.5 |
| New Edge | B | 7,500 | FFQ9981 p | 0.75 | 9988.5/89 |
| Paper | B | 1,000 | FFG 9968/9975 p spread | 0.75 | 9981.5/82 |
| 10yr. Opts | |||||
| JP Morg | B | 2,000 | TYU127/128.5 c spread | 0.14 | 12504/05 |
| Paper | S | 1,000 | TYU121/122 ps spread | 0.05 | 12504/05.5 |
| Mann | B | 1,000 | TYU 125c | 1.09 | 12505.5/06 |
| Paper | B | 1,000 | TYU 123/127 combo | 0.03 | 12506.5 |
| Smith B | B | 2,000 | TYU117/118.5 p spread | 0.14 | 12505.5/06 |
| RJO | B | 1,000 | TYU125 strad | 2.04 | ^12503 |
| RJO | S | 2,000 | TYZ12305 strad | 4.09 | ^ 12322 |
| Above 2 executed as a package | |||||
| Mann | S | 3,500 | TYU123/124.5 p spread | 0.23 | 12508/09 |
| Swiss B | S | 2,000 | TYU125.5/127 c spread | .38 and .37 | 12512/13 |
| Paper | B | 2,000 | TYU128.5c | 0.08 | 12512/12.5 |
| RJO | B | 1,000 | TYU126c | 0.47 | 12513.5 |
| Paper | S | 500 | TYU121/122 p spread | 0.04 | ^12518 |
| UBS | B | 7,000 | TYU123 puts | 0.22 | 12513.5/14 area |
| 30yr. Opts | |||||
| Paper | S | 800 | USU 122p | 0.27 | 12629/30 |
| Locals | S | 1,000 | TYU129/130 c spread | 0.18 | 12631/00 |
| Paper | B | 5,000 | USU128/131 c spread | .61 and .62 | 12711 area |
Comments