Saxo Group Videos

#SaxoStrats - Buying German bunds on Greek fear

The potential for an escalation in the Greek situation combined with QE is persuading Saxo's Head of Fixed Income to go long on German bunds. Simon Fasdal expects volatility to stay high as the Eurogroup meeting on April 24th draws closer. The zero yield mark is approaching and he says there is potential upside on a confirmed Greek default.

Simon says the trade could work as a hedge to a potential sell-off in European equities if Greek panic continues.

He's looking to buy the Bund Future June at 160.50 with stops at 160.00 and 161.50. He also suggests buying the Bund June Call option at a premium of 0.74.

01:20 minutes
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