By Richard Pace — Nov 20 - 05:40 AM
Repeats with no changes
There's renewed demand and growing premiums for EUR put/USD call options
1-month 25 delta risk reversals reach a new high since July at 0.7
2-month 25 delta paid huge amounts at 0.875 Wednesday and is now 0.925
Risk reversals show the implied volatility premium for USD calls vs USD puts
Implied volatility gauges realised/actual volatility risks for FX options
Price action shows EUR/USD still perceived as vulnerable to deeper declines
Huge near term expiry option strikes in 1.05-1.06 zone help contain for now
For more click on FXBUZ
Source:
Refinitiv IFR Research/Market Commentary