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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Crimson Ghost who wrote (2381)11/19/2003 12:39:01 AM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
Looking at all the spreads and implied rates
the best bang for the buck is on dec eurodollar spreads.
The long 97.75 short 98.00 costs 14 basis point and can return 25 basis points. You win 100% of that spread if interest rates do not hike more than 3/4 point in that timeframe. Risk 14 gain 11 but odds big in your favor if I am correct. 11/14 = 78% return

If you want a near 100% lock (IMO)
the 97.25/97.75 costs about 32 and will return 50
a 56% gain (18/32)

This play wins on interest rates of 2% or less
I consider this a near certainty

M



To: Crimson Ghost who wrote (2381)11/19/2003 2:16:05 AM
From: Andrew  Read Replies (2) | Respond to of 110194
 
Personally I hope hes's right and AG and FED dont raise till election over, Then well be sure to see gold at $1000 in 2 0r 3 years.

The US is like an old early 70's Cadilac and AG is like a teenager behind the wheel of that old boat with the 501 CI engine. Full throttle on the gas fishtailing back and forth and then braking with both feet and locking up the brakes while still fishtailing and then full throttle again.

That caddy will crash, yes it will.

gold-eagle.com