The FX volatility upon which options thrive is an unknown, yet key part of their premium, so implied volatility is used as a substitute. A sharp increase in overnight expiry NZD related implied volatility since including Wednesday's Reserve Bank of New Zealand policy announcement, shows that option dealers are expecting a significant FX reaction.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.