HALISTER1: Hedge ECB Taper With Bond, Utilities, EEM ETF Options: MRA

Hedge ECB Taper With Bond, Utilities, EEM ETF Options: MRA

(Bloomberg) -- Implied volatility for rates, utilities and emerging-market equities remains low and ECB taper talk could lead to a reaction in those assets, MRA head of derivatives strategy Pravit Chintawongvanich writes in a note.
  • Looks at what moved during the Fed taper tantrum in 2013
  • Recommends iShares 20+ Year Treasury Bond ETF (TLT) August $126/$121 put spreads, Utilities Select Sector SPDR Fund (XLU) August $53/$50 put spreads, iShares MSCI Emerging Markets ETF (EEM) August $41/$38 put spreads
  • NOTE: Draghi’s Prudence Warning Confirmed in Reaction to His Words
To contact the reporter on this story: Cecile Vannucci in London at cvannucci1@bloomberg.net To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net Richard Richtmyer

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
XLU US (Utilities Select Sector SPDR Fund)
TLT US (iShares 20+ Year Treasury Bond ETF)
EEM US (iShares MSCI Emerging Markets ETF)

People
Pravit Chintawongvanich (Macro Risk Advisors LLC)

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