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Currency hedging volumes sitting well.......>

OPTIONS: Currency hedging volumes sitting well ahead of average so far Monday,
with China's counter-tariff announcement helping prop up activity. USD/CNY
options volumes sit well ahead of average, with higher activity in USD/CNY,
USD/JPY and USD/INR making up for quieter EUR/USD, AUD/USD and GBP/USD markets.
-Implied vols are generally bid across the 1- to 3-month tenor, with notable
rises in USD/TRY, USD/KRW and USD/BRL. USD/TRY call options have been in demand
from the off, with markets eyeing strikes as high as 6.50, a level spot hasn't
touched since September. One of the larger trades crossing so far Monday
includes what appears to be a $250mln 6.00/6.50 call spread rolling off in early
-Close to $2bln in USD/KRW contracts have changed hands so far today, with the
majority being calls: over $2 in calls were traded Monday for every $1 in puts.
-Following disappointing GDP data in mid-April, 1185 USD/KRW call strikes were
particularly popular and those trades are now in-the-money. Popular strikes
Monday included 1,205 and 1,210.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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