FXStreet (Barcelona) – Olivier Korber, Forex and Derivatives Strategist at Societe Generale, suggests adopting EUR/JPY shorts as the best way to hedge a Greek crisis.
Key Quotes
“Greece could bargain beyond end-June and will need cash in a timely fashion to repay the ECB.”
“Short EUR/JPY stands out to hedge a Greek crisis as the yen is massively undervalued and remains the safe haven of choice.”
“We recommend buying a 2M OTM put spread enjoying initial positive vega and generating a payoff exceeding more than seven times the premium paid if the EUR/JPY goes to 130 or below.”
“Buy EUR/JPY 2M put spread strikes 135/130. Indicative offer: 0.52% (spot ref: 138.80). Risks: Limited to the premium initially paid.”
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