Given the prospects of increased stimulus, a reduction in the unemployment rate from a peak of 14.8% to 6.3%, and rising inflationary expectations as priced in US TIPS securities, trading activity in Eurodollars is ramping up as the market evaluates when the Fed may begin to normalize monetary policy (View CME FedWatch tool).
Notably, volume and open positions have surged in shorter-dated options targeting 2023 and 2024 Eurodollar futures:
On the heels of their 10th anniversary, 3-Year Mid-Curve options have seen volume and open interest surge to all-time highs:
The Open Interest Heatmap tool, powered by QuikStrike, lets you see instantly which option calls and puts have the most trading, by strike and expiration, and compare vs. the last day/week/month.
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