Bond Trader Reaps 2,000% Profit by Just Trusting the Fed
- Eurodollar options bet pays off as more rate hikes priced in
- Timing was prescient, leaving strategy with near-maximum gains
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The bond market has an early candidate for trade of the year: a 2,000 percent gain on a eurodollar options position held for just four months.
But the most staggering part might be how easy it was to see coming. After all, the wager boiled down to a simple philosophy of trusting the Federal Reserve.