The MARCH US 10y note in my opinion and based on what the Fed has said, has the potential to rally further because of lack of inflation while wages have risen, also weakening housing and autos. The potential for the Fed to not raise rates further after the December 18/19 meeting and indicate 2 instead of 3 rate hikes for 2019. I am looking for the US 10y note last as of this writing trading at 119.14, yielding 3.007% and potentially targeting 121.00 area yielding roughly 2.900%.
Buy the February 120 Call, costing 27/64ths =$421.88 of quantifiable risk plus fees and associated costs per transaction to enter the trade or Buy the February 120.5 Call costing 18/64ths = $ 281.25 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
56 DAYS TO FEBRUARY EXPIRATION 1/25/2019
Consider downside protection for the above strategy the February 119 Put cost 29/64ths = $ 453.13 of quantifiable risk plus fees and associated costs per transaction to enter the trade or the February 118.5 Put cost 18/64ths = $ 281.25 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
THE MARCH 10Y NOTE IS THE UNDERLYING FUTURE
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