FxWirePro: Optimize Euro implied volatility via gamma spreads
Nov 25, 2015 11:47 am UTC| Technicals
The implied volatility of the ATM contracts of EURUSD is spiking highest among G7 currency pairs amid the speculation on monetary policy decision by Fed. We see 13.5% vols for ATM contracts with 1m expiry which is the...
FxWirePro: USD/CHF to extend bullish trend, buying at dips targets 40-45 pips
Nov 25, 2015 09:48 am UTC| Technicals
It has been a strong uptrend for dollar against Swiss franc for last one month or so. These upswings are in conformity with volumes actions. Today the pair has been able to bounce above to touch resistance 1.0232...
FxWirePro: USD/JPY short term weakness to extend, build fresh put ladders for hedging
Nov 25, 2015 09:10 am UTC| Technicals
The mixed bag of recent U.S. economic numbers would mean that market sentiments of this pair have been speculative ahead of next months fed rate decision. We dont see any reasons to short dollar but short term...
FxWirePro: Deploy CRBS on AUD/JPY HY vols
Nov 25, 2015 07:21 am UTC| Technicals
This pair has been in extremely bullish mood, it is now making every attempts of recovery as both technical and fundamental indications are signaling buying sentiments, weve run through the bullish indications based on...
FxWirePro: Aggressive bears preferring EUR/CHF backspreads i/o option strips to reduce hedging cost
Nov 24, 2015 13:58 pm UTC| Technicals
From the nutshell, 25-delta risk of reversals of EUR/CHF the second most expensive pair to be hedged for downside risks after AUDUSD as it indicates puts have been over priced. Delta risk reversals of EURCHF for next 6...
FxWirePro: Back testing of EUR/CHF risk reversals - volatility smiles suggest OTM instruments
Nov 24, 2015 13:23 pm UTC| Technicals
In a true smile, options with an at-the-money strike are priced with a lower volatility than out-of-the-money and in-the-money volatility strikes. Such market occurrences are observable in the EURCHF FX OTC market. For...
FxWirePro: Glimpse on AUD/USD’s higher IV and how to beat HY vols
Nov 24, 2015 11:46 am UTC| Technicals
From the table showing implied volatility one can make out, at the money contracts of AUDUSD pair for near month expiry has been highest among G20 currency segment after EURUSD, IV is close to 12% levels for next 1m...
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