There’s bee some interest and questions following Adam’s post yesterday Eye the Aussie options for tomorrow and there’s some market scuttlebutt around the numbers and who’s doing what. What the jungle drums are saying is that a hedge fund has interest in the 0.9000 level as they purchased 0.90 puts on Dec 6th which is when we popped up to 0.91+. They must have popped some corks when the Stevens headlines came out yesterday. Depending on the amounts we could see some small aussie buying if they liquidate the position on expiry but they may already have locked in the profit down here.
The Aussie is still looking sick as a pig and so it’s very unlikely we’ll be seeing a run up to 0.90 just to interfere with some options but they are of some size and we’ve got the US coming online soon to add their hats to the trading ring.
Option baubles to stick on your tree
As I’m fond of saying, options aren’t something you should be overly concerned about unless it’s something big like a Panda DNT. Here’s an experiment I ran on a big $3.5bn expiry in the Loonie in November.
