DislikedSee if you can decipher this:
LONDON, Oct 26 (IFR) - USD/JPY Vols retain firmer levels with spot well within reach of huge 80.00 barriers and the threat of BoJ intervention still a factor. 1mth atm is around 11.75 having peaked 11.85 on the initial break to another new 15yr low at 80.41 y/day. We are still seeing 2-way flow both sides of current spot, while risk reversals are well supported for JPY calls but not actually much higher (1mth 25d quoted 1.25 and 3mth paid 1.9 JPY calls today) - helped by size purchase of 3mth 75's Monday (paid 14.5...Ignored
sorry for the late replay, just stepping in.
The article follows the changes in the volatility (vega) price for the different options mentioned. In options volatility is a major component of the premium price, so naturally pricing the volatility (present and future) is a very important process for traders. It seems volatility prices have settled for now, which is also quite visible on our spot charts.
As to learning the options mechanics - I had to learn it during my university years, however it was quite a painful process thanks to the purely academic characteristics of the curriculum. Much later on I discovered most of that knowledge is available on the internet in a much easier to understand language (which made me wanna bang my head in the wall). Most brokers that offer options have very good learning section which could really help those interested.
Hope this helps.
Rgrds
S
