Hugh Hendry said something like: How can I put a similar trade on? How can I put a similar trade on for the US instead of UK?
I remember we used to have a saying about ole "Tricky Dicky". It went like this...... "Stick the dick to Dick before Dick sticks the dick to you" 1970's
You'll have a long journey till you get there but the idea is to play on the Eurodollar futures contract (ED). Start by understanding the product itself. Remember that there is a credit component in the price. Then study option combos like put spreads and call spreads. And the cherry on top is to get a clue of what the bank is going to do, hike or not. For that you'll need all your macroeconomics ammo and read a lot of stuff. I'ts doable but you'll need practice and a lot of dedication to achieve that. Aint no free lunch. It's a style of trading and it's up to you to see if it's your style. Not mine.
Thanks for your reply. The reason I'm asking is because I want to learn. I'm not going to run out and trade this without understanding. I know most of the normal option setups and I have traded them in the past on indices and equities. What I'm most interested in are the various vehicles I can use to trade something like this. Unless I'm miss-reading Hendry I'm thinking something like this: The idea is that lots of people talk about inflation and expect interest rates to rise. How do I take their money? Through which vehicles? Then I want to bet that interest rates will not rise. Which vehicle?