Just One Ruble Option Contract Still in the Money After Plunge
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A glimpse into the ruble options market captures just how much the currency’s 52 percent plunge this year has caught traders and investors off guard.
In a market with hundreds of bullish call options worth more than $15 billion combined, only one of them -- a $5 million contract expiring a year from now -- is still profitable at today’s exchange rate of 67.9 per dollar. Every single other contract is currently worthless because they gave traders the right to buy the ruble at exchange rates that are stronger than today’s levels, according to data compiled by the Depository Trust & Clearing Corp. from clients of U.S. banks.