Bond Trader's $10 Million Volatility Bet Is Paying Off
- A $10 million strangle position turned in-the-money after data
- Wager placed earlier this week is set to expire on July 21
Manulife Prefers Stocks Over Bonds on 12-Month View
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A bet of potentially record proportions in the U.S. Treasury options market might just pay off after all.
The benchmark U.S. 10-year yield fell as low as 2.277 percent Friday, with futures prices jumping to 126-01, after weaker-than-forecast readings on inflation and retail sales. At those levels, a so-called strangle trade in 10-year Treasury options, initiated Tuesday, likely turned profitable for the first time.