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I'm currently reading Kathy Lien's 'Day Trading and Swing Trading the Currency Market' and I came across this phrase on risk reversals: "near choice". What does it mean when risk reversals are near choice? My initial guess is that it means that both OTM calls and puts have roughly the same implied vols?

Thanks in advance!

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I think this is related to traders jargon. When a dealer quotes the price of a spread between two securities (such as a risk reversal) as "10 cents your choice" or "ten cents around" it means that the bid-ask midpoint is zero and it will cost you 0.10 USD to enter a position long the first security/short the second, and also 0.10 to short the first/long the second. Obviously you have to tell the dealer which one you want to do. In the more normal situation one security is worth more than the other and then the spread might be quoted as "forty twenty for the call" meaning you pay 40 cents to buy the call and sell the put, or receive twenty for the reverse.

By extension (and I have not heard the term before) it would seem the "near choice" would mean close to zero, but maybe not exactly zero. So yes, it would seem to mean that ATM puts and calls are approximately the same price.

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