The fact Ben played it very low key caused a significant contraction in options prices.
Oct. Straddle in 30’s close to 40 tick’s lower – that’s not peanuts that’s $625.00 per straddle.
Flows listed below show there was some continued call buying in ED options prior to Ben's remarks mostly focused on the front contracts.
There were interesting political reasons Ben had to play it close to the vest which ofcourse means the Sep. 20/21 FOMC meeting could be quite a bit more interesting.
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