• FX option flows have seen strong demand for post NFP USD put options

• That demand has lifted topside over downside strike premiums in EUR/USD

• Sub 1-month expiry risk reversal contracts regain USD put vs call premium

• Benchmark 1-month expiry 25 delta risk reversal trades 0.15 for USD puts

• Reached 4-year high 0.4 late Aug, but quickly returned to favour USD calls

• Outright demand for short dated expiry USD puts noted - strikes to 1.1200+

• Overnight expiry options hold biggest NFP FX volatility risk premium in 2024

• Recent price action suggests NFP miss could see biggest FX reaction

• Related comment nL1N3KG09E

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