Palladium Price News: XPD/USD risk reversal probes six-month downtrend

One-month risk reversal on Palladium (XPD/USD), a measure of the spread between call and put prices, not only marks the heaviest daily jump in two weeks but turns positive after a consecutive six-month south-run, according to data source Reuters. 

A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. That said, the daily difference between them recently rose to +0.024.

The moves could be linked to the XPD/USD price performance as the precious metal wobbles around the 15-month low, close to $1,900 ahead of Monday’s European session.

Even as the options market signal favors the short-term palladium buyers, the recent risk-off mood challenges the commodity’s corrective pullback.