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The Long and Short of Futures Options: Forex Options

Mar 27, 2013

Today's guests are Craig Leveille, Executive Director, FX Products, and Jeff Lewandowski, CTA, Foremost Trading

What to Know:What you should know about CME's FX Products

  • Who is the typical customer of CME Group's FX products?
  • How have trends impacted the volume and trends in the Euro option products in recent months?
  • What are some of the hot trends right now in you other products?
  • We've seen extremely low levels of volatility on the equity front. Are we seeing similar volatility reductions in the FX realm as well?
  • Were there any FX option products/spreads/strategies that really resonated with your clients?

What's New:

  • USD/CNH (offshore Chinese Renminbi) futures launched February 25, 2013.
  • Mini/short-duration products are all the rage, any new upcoming products in that category?
  • Any other major FX product launches on the horizon?
  • Do you ever think we'll operate in a world where customers are able to execute via the greeks across a broad spectrum of products

What to Watch: Are we all waiting for the next shoe to drop in the Eurozone?

What's on your Mind: Answering listener mail

  • Email form Joe O'Reilly - I'm a covered call writer who is interested in currencies (particularly the Euro and Aus). How does the smile-type skew in the products impact a covered call writer like myself? Is there anything I should be aware of when writing these products? Should I reconsider my typical equity covered call strategy of sticking with ITM calls because there is more volatility in the currency wings? Any insight that you could provide would be deeply appreciated. And I hope LSFO is on much more regularly in 2013. I look forward to these episodes.
  • Email from Syrin Dunapar, Cyprus - What impact, if any, do you feel the inclusion of Turkey into the EU would have on the Euro and Euro volatility?
  • Tweet from Joey B - Are institutional customers typically net buyers or sellers of currency volatility?