Quiet start to the week (but you never know when something’s gonna blow up)
April 23, 2024
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–TSLA reports today. Quiet day in rates to start the week, but a couple of interesting disaster insurance trades.
Buyer of 30k SFRK4 9650c for 0.5. These expire on 10-May, SFRM4 underlying (9473.5). Settled 0.25
Buyer of 2500 SFRZ4 100c for 0.25 vs 9503, 5d. Zero strike? This guy must have misread the dotplot. Never! Right?
Buyer of 0QU5 9600/9650cs cov 9559.0, 10d vs Sold 2QU5 9625/9662.5cs 9625c
So front cs settled 9.5 and back 8.0. Premium paid was 2.0. Only traded 2k, but this is a nice way to fade weakness in reds that has helped U5/U6 invert from flat to -28 since February. 50 wide call spread vs 37.5, so if both contracts explode higher through upper strikes it’s still a winner. Traded just 2k. NOT A RECOMMENDATION.
SFRU5 settled 9557.5 so lower strike is 42.5 out-of-money. SFRU6 settled 9585.5 so 39.5 out.
–New Home Sales and 2y auction today.
–META and CME report tomorrow.
