Free Trial

Hedging Volumes More Muted After Busy Wednesday

OPTIONS
  • The rally and subsequent sell-off in the USD yesterday helped stimulate healthy options volumes, with total notional options traded clearing $90bln, according to DTCC data. This marked the largest FX options volumes in just over a week, for one of the busiest sessions in August for the market.
  • Markets are more muted so far Thursday, with just USD/KRW and USD/CHF seeing more notable trade than running recent averages. Upside protection remains in vogue across USD/CNY, with over $3 in calls trading for every $2 in puts so far Thursday. Call strikes at 7.25, 7.35 and 7.40 have drawn the most interest.
  • Implied vols across CNY continue to ebb off recent highs, with 3m implied edging back below 6 points after touching 6.56 points last week, the highest since mid-March.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.