(Bloomberg) -- Investors should buy call options on
Japanese bond futures to profit from the view that the central
bank will maintain a policy of raising interest rates only once
every six months, said ABN Amro Securities Japan Ltd.
The contracts give the right to purchase the 10-year future
at a strike price of 132, close to the current level. To offset
the cost of buying one option, investors should sell two options
with a higher exercise price of 132.5, speculating that gains
beyond that level will be limited, said Tatsuo Ichikawa, a
fixed-income strategist at ABN Amro in Tokyo.
Read more at Bloomberg Bonds News
Japanese bond futures to profit from the view that the central
bank will maintain a policy of raising interest rates only once
every six months, said ABN Amro Securities Japan Ltd.
The contracts give the right to purchase the 10-year future
at a strike price of 132, close to the current level. To offset
the cost of buying one option, investors should sell two options
with a higher exercise price of 132.5, speculating that gains
beyond that level will be limited, said Tatsuo Ichikawa, a
fixed-income strategist at ABN Amro in Tokyo.
Read more at Bloomberg Bonds News
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