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Another session of overall lacklustre.......>

OPTIONS
OPTIONS: Another session of overall lacklustre currency hedging volumes, with
the continued absence of Asia-Pac markets clearly having an impact on trading
activity. Lower-than-average volumes in USD/JPY, EUR/USD and EUR/GBP
counteracting better trading activity in GBP/USD and AUD/USD.
-The sharp move lower in AUD/USD has clearly prompted many to lock-in lower
AUD/USD rates, with over $2.5bln in AUD/USD options contracts changing hands so
far Wednesday, well ahead of average. Vanilla puts have been in demand, with the
largest trade of the day a one-week $0.7185 put strike to the tune of A$348mln.
Other interesting trades include a 0.7125/0.7165 straddle due to expire at
tomorrow's NY cut, a trade that breaks even at approximately $0.7105/$0.7185.

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