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USD/KRW Calls In Demand Amid Heavy Option Activity

OPTIONS
Last week saw the highest currency options turnover since at least early December, with well over
$400bln notional changing hands across the week via the DTCC.
  • Activity was high again on Monday, with busier-than-usual KRW, TWD and HKD hedging helping prop up markets, although trading among the majors is also buoyant at the NY crossover.
  • Structures in demand included USD/KRW calls and a sizeable USD/HKD call spread targeting the upper-end of the trading band on a one-year expiry.
  • Front-end implied vols have ticked higher as equities pull away from alltime highs, most notably in AUD/USD, in which the 1m contract now sits at the highest level since early November.

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