Best way to get put options on Japanese Bond Market, or do inflation swaps

Discussion in 'Trading' started by Newmoney24, Mar 21, 2013.

  1. I'm looking at Japanese bond ETFs but feel limited- perhaps I'm not finding the ones which have a lot of volume-- please point out the best ones you know

    Also does anyone know to buy/sell japan inflation swaps?
  2. The JGB trades on the TSE. interactivebrokers can give you access to it.

    The JGB has futures options and they are liquid. You can buy ATM puts for ~.30 one month out (thats about $3K in premium) that let you control around $1MM of the cheapest to deliver on the 10 yr bond future. (which reflects the 7 yr bond at 25bp right now)

    And boy has it been painful....
  3. Alternatively if you want to keep your size a little smaller, trade the SGB (JGB mini) on the singapore exchange (SGX) -- also available on interactivebrokers. 1 contract is ~ $155k notional (instead of $1MM for JGB)...

    No options available on that one though.
  4. Butterball


    Call your friendly prime broker.