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FX Options Update

Large EUR/USD exotic one touch weighing on volatilities
Gustave Rieunier, 25 November 201125 November 2011
Some very large One Touch trades have been going through in the interbank FX Options market. In this analysis we look at their impact on both the vanilla option market and the spot market. Read more
591 Views
1 Likes
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Will BOJ ever intervene? Options market is in fear
Gustave Rieunier, 26 October 201126 October 2011
USDJPY is at all-time lows. Despite this, we are seeing continued demand for short-term upside options. Clearly this demand is driven by fear of intervention. But will intervention ever come? Read more
320 Views
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Gold volatility and margin requirements
Gustave Rieunier, 20 October 201120 October 2011
Precious metals have been very active in the last few months so we take a look at what happened to volatilities and risk-reversals during this time and analyse what has been the impact of increased margin requirements on particularly gold and silver. Read more
203 Views
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Options: Short-term ease and medium-term concerns over Eurozone
Gustave Rieunier, 30 September 201130 September 2011
Despite lower volatilities during the week, the options market remains very concerned about potential deterioration in the Eurozone crisis. Read more
239 Views
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Weaker CHF and lower volatility... SNB's double whammy!
Gustave Rieunier, 09 September 201109 September 2011
What a dramatic week for the Swiss franc. Spot movements have been extreme. But so have movements in implied volatilities. In this regard, SNB has hit a home-run! Read more
729 Views
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CHF and gold: unsafe havens amidst volatile options market?
Gustave Rieunier, 17 August 201117 August 2011
The recent US credit rating downgrade and subsequent stock market declines sparked extreme moves in FX option volatilities. Most of the focus hence has been on so-called safe havens, such as CHF and gold ... but are these assets that safe after all? Read more
927 Views
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Buying options on a Friday … are you out of your mind?
Gustave Rieunier, 29 July 201129 July 2011
Why are FX Options volatilities so bid this morning? Well, this is not any old Friday and we have a lot to look forward to next week... Read more
740 Views
2 Likes
1 Comments
1 Followers
Game Changer?
Gustave Rieunier, 27 July 201127 July 2011
The recent Greek bailout package and the U.S. debt situation have somewhat changed the name of the game... FX options are reacting strongly to the most recent market developments. Read more
625 Views
1 Likes
0 Comments
1 Followers
Fear of currency crisis looming spurs option buying
Gustave Rieunier, 14 July 201114 July 2011
With Italy now dragged into the PIIGS mess, what started as a logical reaction to buy options earlier in the week ended in almost panic buying. There is no doubt that what we have seen is fear of a major currency crisis looming. Read more
558 Views
0 Likes
1 Comments
1 Followers
European debt crisis and FX Options
Gustave Rieunier, 22 June 201122 June 2011
The situation in Greece will continue to influence markets for some time yet and will continue to do so due to the risk of contagion from a possible default. Investors are increasingly using Options as an insurance against this volatile FX Market. Read more
242 Views
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Taking a different tack - using options in combination with spot
Ken Veksler, 22 June 201122 June 2011
Here's my new tack: try using options, not independently, but in combination with spot, though not as a stop loss or hedging mechanism but rather as a way by which to participate on an intraday basis. Read more
345 Views
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Intervention fears impact short-term options
Gustave Rieunier, 15 June 201115 June 2011
Both in USDJPY and EURCHF we see indications of how short-term interbank options are being priced to hedge the risk of a possible intervention by either the central bank in Japan or Switzerland. Read more
90 Views
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0 Comments
0 Followers
Focus on precious metals
Gustave Rieunier, 08 June 201108 June 2011
During the last few weeks the market has seen some very volatile moves in precious metals, with for instance XAGUSD spot trading to test 50 USD per oz. and XAUUSD spot trading up to 1,575 USD per oz. Read more
106 Views
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Greece concerns spark EURUSD vols buying
Gustave Rieunier, 09 May 201109 May 2011
It has clearly been a busy time in foreign exchanges over the last few weeks, and Friday saw a very sharp move that generated an interesting price action in the FX options market.  Read more
116 Views
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ECB meeting in focus; USDJPY upside and CHF strike
Gustave Rieunier, 30 March 201130 March 2011
Volatilities have been sold off across the board quite dramatically since USDJPY collapsed more than four big figures just two weeks ago.  We are now seeing a stop to this selling and renewed interest in purchasing options. Read more
100 Views
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0 Followers
FX Options Update: ECB meeting in focus; USDJPY upside and CHF strike
Gustave Rieunier, 30 March 201130 March 2011
Volatilities have been sold off across the board quite dramatically since USDJPY collapsed more than four big figures just two weeks ago.  We are now seeing a stop to this selling and renewed interest in purchasing options. Read more
102 Views
0 Likes
0 Comments
0 Followers
A dramatic week in options
Gustave Rieunier, 23 March 201123 March 2011
It is now almost two weeks since the dramatic events that created havoc in Japan and shocked the rest of the world. We can now look back and analyse how things unfolded in order to gauge the state of the FX market, and in particular the FX Options ma Read more
65 Views
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0 Comments
0 Followers
FX Options Update: A dramatic week in options
Gustave Rieunier, 23 March 201123 March 2011
It is now almost two weeks since the dramatic events that created havoc in Japan and shocked the rest of the world. We can now look back and analyse how things unfolded in order to gauge the state of the FX market, and in particular the FX Options ma Read more
62 Views
0 Likes
0 Comments
0 Followers
Global uncertainty supports volatility
Gustave Rieunier, 24 February 201124 February 2011
Financial markets now seem to be taking most of their cues from the continued turmoil in the Middle-East.  Risk-OFF, Safety first, Oil prices… all are just different ways of expressing uncertainty and concerns about future price movements. Read more
92 Views
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0 Comments
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Signs of nerves in the options market
Gustave Rieunier, 21 January 201121 January 2011
While it is no secret that the option market has been somewhat subdued year-to-date, with implied volatilities under pressure and spot markets rangy, we are starting to see signs of increased nervousness hitting the option market. Read more
49 Views
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FX Options Update
Saxo Bank's FX Options Update is an ad-hoc commentary piece on market activity in the foreign exchange options market. It's written by Gus Rieunier, Saxo Bank's head of FX option trading.
Author(s) Gustave Rieunier, Ken Veksler

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