​Demand, Flow In Eurostoxx Contingent Structures Proliferates

Demand and subsequent flow in Eurostoxx 50 (SX5E) calls contingent on another index, exchange traded-fund or asset class have mushroomed as hedge funds explore all avenues to cheapen upside exposure to Europe. The spike in such strategies comes as vols spike higher in the SX5E amid increased flow in upside calls, call spreads and call flys with tenors from April-June.