September 20, 2016

I will reiterate that all the talk about “rates going lower” or maybe “going negative”  or “staying low” are classic after-the-fact talking head garbage…Short term interest rates DID go lower…but they have been rising for several months now…and I believe will FORCEFULLY continue higher for at least the next few years.

I also believe that whether or not the Fed does raise rates tomorrow is immaterial. As I keep saying, the marketplace will do it for them…and THEN the Fed will respond.

I CONTINUE TO RECOMMEND BUYING THE JUNE 98.87 PUTS, FIRMLY BELIEVING THEY WILL SOON BE IN-THE-MONEY AND BEGINNING TO TRADE LIKE FUTURES CONTRACT.

Here is a chart of how the numbers and dollars work with this option…And then be SURE to take a good look at the chart that then follows...

Here is a chart of the actual Eurodollar 90 day Interest Rate…and I remind you that as it goes up, Eurodollar futures will go down.

DOES 1.5% or 2.0% look AT ALL hard to imagine?

I CONTINUE TO VIEW THIS AS A TRADE UNLIKE ANYTHING I HAVE EVER SEEN IN THIS BUSINESS.

Call me if you want to do something with it.

Thanks,

Bill

866-578-1001

770-425-7241

All option prices in this newsletter include all fees and commissions.

The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Eurodollars