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Apr 21 - 03:55 AM

USD/JPY - Cheap Protection Against Deeper USD/JPY Declines

By Richard Pace  —  Apr 21 - 02:12 AM
  • Those worried about deeper USD/JPY declines might consider RKO options

  • They are considerably cheaper than regular vanilla JPY call/USD puts

  • Like vanilla call, RKO is option to sell USD/JPY at set strike and expiry

  • However, a trigger is attached below strike - option dead if trigger touched

  • Best suited for when USD/JPY downside expected to be limited

  • Moving trigger closer to strike will reduce cost further nL1N2MD0O7

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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