Free Trial

SocGen Recommend Buying DNT EUR/GBP Option

OPTIONS
  • SocGen write that while USD rates continue to drive trends, crosses including EUR/GBP are likely to remain range-bound and selling their volatility makes sense. As such, they like EUR/GBP double-no-touch options, as spot is currently trading in the middle of its six-month range, while volatility looks expensive.
  • They add that over the past three years, selling EUR/GBP gamma has been an attractive strategy thanks to a persistent vol risk premium that they expect to stay in place.
  • As such, they recommend buying a EUR/GBP 5m double-no-touch KO 0.8450/0.8800.

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.