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SOFR Option Weekly Commentary 10/17/2025

Another week without Government economic data. NFIB Small Business Optimism fell to 98.8 from 100.8 previously. Yesterday's story about Zion & Western Alliance Bank bad loans (along with JPM Jamie Dimon's cockroach comment) prompted a sell-off in equities & pushed rates lower, however, today stocks were higher & SOFR futures were lower as credit worries subsided. President Trump said that a meeting with PRC President XI is a go while tariff worries still loom. 

"Fed Bank of St. Louis President Alberto Musalem said he could support another rate reduction to bolster a slowing labor market, but emphasized officials should make decisions meeting by meeting given economic uncertainty."

Sofr Vols were lower on the week (see below spreadsheet).

SOFR OPTION PLAYERS to NOTE THIS WEEK:

sfrx5 9625 9618 9612 9606 p condor paper paid .75 10k ref 96.375

sfrx5 9625 9631 9643 9650 c condor paper paid 4.25 7500x ref 96.375

sfrx5 9687 9712 cs sfrx5 9687 9737 cs stupid

vs sfrz5 9687 9737 cs 2x paper paid .75 15kx +2 dec

sfrz5 9625 9631 9643 9650 c condor paper paid 4 5kx

sfrz5 9650 9700 c 1x2 paper sold 20k @ 1.75 to 1.5 -1 leg ref 96.36 

sfrz5 9637 9625 ps

(tied 96.355 d28) paper sold 10k @ 4.25

(tied 96.395 d24) paper sold 10k @ 3.5

sfrz5 9637 ^ paper sold 5k @ 14.5-14 ref 96.36

sfrz5 9637 ^ paper paid 13.5 5kx ref 96.395

sfrz5 9656 9675 cs paper paid 1.5 10kx ref 96.355

sfrz5 9625 9643 9662 c fly paper sold 15k @ 7.5 to 7.75 ref 96.34

sfrz5 9618 9606 p 1x2 paper paid 1 15kx ref 96.40

sfrz5 9637 9625 p 1x2 paper paid 1.5 15kx

sfrf6 9668 9681 9687 9700 c condor (tied 96.675 d05) paper paid 2 10kx

sfrh6 9675 9687 cs vs 9637 9625 ps paper paid .5 10kx +cs ref 96.37

sfrh6 9650 9668 9687 9706 c condor paper sold 20k @ 4.75-4.5 ref 96.60

sfrh6 9700 9750 9775 c tree paper paid 1.75 7kx ref 96.605

sfrh6 9668 9681 9687 9700 c condor paper paid 1.5 10kx ref 96.605

sfrh6 9637 9631 9625 p fly (tied 96.58 d05) paper paid .75 15kx

sfrm6 9700 9750 cs vs 0qz5 9700 9750 9800 c fly paper sold 10k @ .00 -0qz5c

sfrm6 9625 put (tied 96.90 d10) paper paid 3.25 10kx

sfru6 9675 9625 p 1x3 paper paid 3.75 to 4 10kx + 1 leg ref 96.96

sfru6 9650 9750 squash (tied 97.005 d45) paper paid 6 15k +c

sfru6 9681 9656 p 1x2 paper sold 20k @ 2 to 1 -2 leg

sfru6 9712 9681 p 1x2 paper sold 20k @ 2 to 1 -2 leg

sfru6 9675 9600 ps (x1) vs sfru6 9650 9625 ps (x3) paper paid 2.25 to 2.5 on 25kx Ref 96.975 (+96.75/96.00)

sfrz6 9700 9662 p 1x2 paper paid .5 20kx +1 leg

0qz5 9800 call paper paid 1 to 1.25 150kx ref 97.045

0qz5 9656 9625 ps paper paid 1 30kx ref 97.045

0qz5 9675 9650 p 1x2 paper sold 20k @ 1.5 ref 97.035

0qz5 9681 9668 9612 brk p fly (tied 96.93 d02 c) paper sold 10k @ .00 - wings

0qz5 9675 put (tied 97.075 d16) paper paid 3 10kx

2qf6 9675 ^ paper sold 2k @ 36 ref 96.90

2qh6 9687 ^ paper sold 2k @ 44 ref 96.90

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