Risk of Big Rates Swings on Brexit Vote Is Options Trading Arena
A Pro-Brexit demonstrator waves a flags while protesting outside the Houses of Parliament in London, U.K., Wednesday, Sept. 4, 2019.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
The risk for big market swings on the back of the Brexit vote in Parliament Saturday is the ideal territory for savvy options traders.
There is scope for gilt yields to keep moving higher if a deal is ratified by lawmakers. But the outcome of the vote remains too close to call and so positioning for it is best done through options that protect the risk either way.