FX options traders lost in Iran fog
Headline ‘ping-pong’ saps hedge funds’ conviction, though pockets of vol selling have re-emerged
Many foreign exchange options traders are holding back from meaningful directional bets following the US-Iran ceasefire, though some have seized the chance to sell volatility through exotic structures.
Since the start of April, the US dollar has given up most of its gains against major peers as oil prices have fallen, while US equities have rallied on news of a ceasefire and the prospect that the Strait of Hormuz will reopen.
But the torrid March that saw many hedge funds suffer blow-ups in US
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