GREECE ME UP.....

So, after what must be potentially the shortest bridging loan since the kids hanging round outside my local newagents gave an old tramp a few quid to nip in and buy them some marlborough lights, it looks like Greece is finally going take the free goodies from the nice gentlemen at the IMF. Well you know what they say about taking sweets from strangers. Not generally advisable. This time will be no different.

While the single currency has of course had a kneejerk rally on this, longer term I don't personally see this as a huge positive for anyone, not even Greece.

How to play this is of course the million dollar question. Having been scouting around this mornig, I have to say 3m EUR/JPY vol looks cheap to me. Gamma should aid the pain of the premium, with short term realised vol indicating that the nimble will do well regardless of overall direction. Add in all the usual caveats about having Yen exposure and it starts to make sense to me. Plenty more scenarios see this trade higher than those that see it trade lower and short term implied / realised correlation indicates a dislocation (of sorts....)