Morgan Stanley reportedly purchased USD150Ð250 million (notional) of one-month dollar puts/Mexican peso calls between Feb. 10-15. The options are struck at MXN10.60-10.70. Trading volumes on the currency pair more than doubling over the previous few weeks, said New York-based foreign exchange options traders. Spot was trading at MXN10.9 on Friday. Melissa Stonberg, spokeswoman at Morgan Stanley in New York, did not return repeated calls.
Its unusual to see single trades of over USD100 million executed on the peso, however over the past few weeks over USD600 million notional has been traded, noted one trader. Interest is coming from a variety of market players, with many looking to buy the peso over the euro in order to achieve a dollar mix, added another trader.
