Home Gold risk reversals turn positive as market favors calls (bullish bets)

Gold risk reversals turn positive as market favors calls (bullish bets)

Published date: 22 Nov. 2018 | 06:39

Gold (XAU/USD) one-month 25 delta risk reversals (XAU1MRR) are currently trading at 0.15 in favor of gold calls, having turned positive on Tuesday.

A reading above zero indicates the implied volatility for calls is higher than that for put options. Essentially, the demand for gold calls is higher than that for gold puts.

It is worth noting that risk reversals were printing negative in favor of put options seven days ago. So, it seems safe to say that the options market has turned bullish on gold in the last few days.

XAU1MRR

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