###POV: OPTIONS MARKETS SEE MORE SEK............>

SEK: ###POV: OPTIONS MARKETS SEE MORE SEK VOLATILITY TO COME

-Across G10 FX, EUR/SEK 1-month realised/implied volatility ratio is by far the

lowest (at 0.75), suggesting that options traders are pricing in a greater

probably of large swings in the cross in the coming weeks than we've seen of

late. This is largely due to 1m implied vols today touching levels not seen

since December. One-month contracts now comfortably cover the 9th September

Swedish general election and any potential fallout.

-Protecting against further SEK weakness is becoming more expensive (3m vanilla

10.75 call strikes cost 123 EUR pips at writing), meaning traders may be seeking

to counter high premium costs through higher strikes, KO barriers or

premium-free options. At writing, adding a Sek11.00 KO barrier cuts the premium

cost to just 13 EUR pips.

-The top five most profitable strategies for EUR/SEK over the past twelve months

continue to suggest holding their current winning long position (the all-in

reversing DMI strategy is the most profitable).