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Some buying was present at the opening but the market is quiet and has been trading either side of 140.00. Presently the market has become steady. Option expiration is on Friday. As of last Thursday's OI 16,085 calls were open at 140.00 and lower, 3,353 lots of which are 140.00 strike. 4,230 lots of puts were open at 140.00 and higher 1,463 of which have a strike of 140.00. We can assume that most options are hedged. Calls will very likely be abandoned below 140.00 and thus the corresponding hedges will be covered. The opposite of course applies to puts. It's early in the week and option holders may have a sit and wait approach until later in the week. The market tends to linger around the strike prices for a while before it resumes its trend. The trend has been steady with corrections. Systems have been buyers and they will resume their program at 8:00 or so. The depth of market is clear either side of current levels in Sep until 142.00 where a single block is offered. Scattered bids and offers are seen on either side in Dec and Mar. BRL has been flat and is 3.1317. COP is 2974.20 -.77. Bond futures dropped overnight and are holding now. As a result, metals have been on the defensive. Currencies are mixed against the $ and the € continues to be firm. The DX is down for the day. Beans are higher, oil lower and equities are higher. All the softs are higher especially cocoa.

Apparently, good size traded in Sep a few mins. ago as the market was offered but absorbed. The arb is 43.29 indicating a steadier London. NovJan is 25 bid premium.

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Market *PIC*
KC Volatility