Option Traders Aren't Buying the Yuan's Latest Pullback
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The last time the yuan retreated like this, options traders piled into short bets against the currency. This time, they’re sticking to the sidelines.
The yuan’s three-month risk reversal -- a measure of puts over calls -- has dropped to near its lowest level in more than three years, even with the spot down 2.8 percent from a peak reached Sept. 8. That’s a far cry from the end of 2016, when a selloff in the yuan spurred the risk reversal to triple.