(Bloomberg) -- Investors should simultaneously sell call and put options on Japan's bond futures for June delivery because the outlook for unchanged interest rates will limit price swings, according to Daiwa Securities SMBC Co.
Sell call options with a strike price of about 135 yen and sell put options with a strike of 132 yen by the end of May, said Hidenori Suezawa, chief strategist at Daiwa Securities. Call options give the owner the right, not the obligation, to buy bond futures at a specific price by a fixed date in exchange for a fee. A put option grants the right to sell.
Read more at Bloomberg Bonds News
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