By Richard Pace — Jan 19 - 02:52 AM
Recent AUD/USD option flows show protection against volatility and downside
Premiums higher as a result, but have peaked for now as spot setback stalls
Holders of implied volatility are protected against actual volatility
There's been enough actual volatility to justify current implied levels
One month historic volatility trades similar levels to 1-month implied
Repeat past months spot volatility would cover premium with once daily hedge
AUD/USD 1-month expiry implied volatility Click here
Source:
Refinitiv IFR Research/Market Commentary