BUZZ-COMMENT-Options cast EUR/USD fall under parity in worrying light

Feb 3 (Reuters) - There are far less options below parity than above, and the lack of preparation for a drop which looks imminent could force a big adjustment that speeds the decline.

It is surprising that there hasn't been a greater change in hedging for the drop that's implied by changing monetary policy in the U.S. and euro zone. Let alone the support the greenback may derive from a trade war.

The latter has been the most influential factor to influence EUR/USD with the pair dropping from 1.0937 on the day of the U.S. election last November to 1.0125 on the day tariffs were imposed by the man who won.

The two moves on Nov. 6 and Feb. 3 are by far the largest single day moves for several years, but they could be exceeded if, and now more likely when, EUR/USD slips below a point of great significance.

There may be a rush to hedge with traders short gamma which effectively means they are distressed, and are reacting with less consideration for the price, resulting in a rapid and disorderly move.

This may be exacerbated by the lack of speculation on a drop which is roughly one quarter of the record bearish bet achieved during the euro zone crisis when the EUR/USD drop halted above 1.04.

This slide has already gone much further and may well become faster.

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