Small Stakes - February 16, 2021 - Interest Rate Options with DV01
What is a basis point worth? Frank and Pete answer this existential question while also creating option strategies in an active interest rate market.
The guys give context to the recent move in Small Treasury Yield (S10Y) futures, and they use DV01 to draw up a covered call for all those long yield traders out there.
Find out how to use the dollar value of a basis point in your Treasury trading, and see whether it's time to take some profits in your long yield positions.