Bund / Peripheral spreads

Spanish 10-year bonds fell, sending the yield five basis points higher to 4.77 percent, and widening the yield spread over bunds by eight basis points to 220 basis points.

The Portuguese 10-year yield rose five basis points to 5.49 percent as the nation sold short-term securities, while the yield on the equivalent-maturity Italian bond increased one basis point to 4.09 percent.

I want to play this spread with options. Any ideas on this board ?
 
Actually, it's simple. If you wanna bet on a periphery blowup, buy Schatz calls. If you wanna bet on the opposite, buy Schatz puts.
 
Quote from Martinghoul:

Actually, it's simple. If you wanna bet on a periphery blowup, buy Schatz calls. If you wanna bet on the opposite, buy Schatz puts.

Classic safe haven play...:)
 
Quote from ASusilovic:

Yeah, I know. I just called Eurex.

Eurex is doing you a favor by not letting you trap yourself in illiquid options positions. Even the <i>futures</i> trade only a few thousand cars a day.
 
Back
Top