FX OPTIONS: Daily Overview London, November 29. Spot EUR/USD Slumped first thing - through 1.4800 to levels ahead of 1.4720. Vols back out to the right - 1wk atmf paid 10.15 and a 1.4690 @ 10.5 (now includes ECB). 2week remains popular on an 11.0 handle, since yesterday"s FOMC inclusion. 1m atmf paid 9.3-9.4, 3m through 9.0 and 1yr to 8.3 (given later at 8.25 on size). Vols have eased marginally as spot sits back in mid .47"s. Big risk reversal trading 800mln a leg - 9 month 1.45 over 1.50 at 0.225. Spot Cable slipped back on to a 2.0500 handle and fuels downside interest across the curve - size buyer 6m 1.8400 at 12.4 GBP 300mln was the largest we heard today. Vol curve supported as risk reversals hold firm amid the ongoing short downside scenario. Vols along the EUR/GBP curve have eased further today - 1yr atmf given good amounts at 7.35-7.3-7.25. Similar story in EUR/CHF with spot back around 1.6500 from recent 1.6300 lows. Spot USD/JPY back toward the mid 109"s late on, but around 110.00 for the most part. No real change to vols throughout, with 1m atmf already down near 2.0 vols this week. 1m r/rev settles around 3.0 from 4.2 JPOY calls Monday. Big buyer 1yr 120.00 JPY puts at 8.0-8.1 - talk as much as USD 800mln. Recall this contract was given on close to USD 2bln from 8.7 through 8.5 in Tokyo on Monday.
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be patient, self-belief and discipline... stay focus...
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