Volatility pushes up prices for short-dated forex options
One week out-of-the-money (OTM) 25-delta EUR/USD put options hit around 17.5 vols on September 19, more than twice the 8.4 vols level at the beginning of the year. Volatility is used by traders to measure the price of options, as the more volatile the options are the higher their price. At the same time last year similar options were trading at about 7.2 vols.
"I can't remember the last time one-week options prices were this high," said Simon Smollett, senior options strategist at Calyon in
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