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Posted by Tango
on February 11, 2019, 9:38 am
Big changes in the OI took place on Friday. EFS postings in March are likely a liquidating factor. The March volume was mostly outright but associated to option expiration for both outrights and futures. The total spread volume dominated the total OI change. The behavior of spreads on Friday seems to indicate March roll and maybe new spreads being initiated in MayJul with expectations of similar behavior to the MarMay spread which traded out to the mid -3.00s during its life. However, the MarMay was the subject of a rule change and MayJul is not so itís uncertain how it will play out. There is no significance that is evident in the large OI change imo. Option expiration and spreads played a major role. Today the market hit several good bids on the way down and seems to have invited some buying that rallied prices up to close to 102.00. It has now drifted lower and remains lifeless. The roll will now be the prime factor but as we see it is mostly confined to spreads. USDBRL is 3.7368 +.0078.+.21%. USDCOP is is 3124.77 +11.22. The $ remains steady.