A large option bet on quicker rate-hikes by the Federal Reserve got bigger this week, even as officials pushed back against hawkish expectations. The wager -- carrying a notional value of $40 billion -- is focused on a possible surprise at the annual August symposium in Jackson Hole, which has been used in the past by central bankers to signal changes in monetary policy. The positions are now the third-biggest of any Eurodollar options. As it stands, Eurodollar futures -- which are priced off three-month Libor -- imply a bit less than five 25 basis point rate increases by September 2024. This option play, focused on ... (full story)