EUR/USD: Put options are again drawing bids; risk reversal shows

0

EUR/USD’s options market data shows investors are again adding bets to position for a decline in the single currency. 

The one-month risk reversal, which measures the difference between calls and puts prices, has fallen back to -0.40, having bounced to near-zero levels in the third week of January. 

A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. 

Get the 5 most predictable currency pairs

About Author

Comments are closed.