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I was wondering why ppl use the wordings being „rhs/LHS“ right hand side / left hand side when having an risk reversal for example Long EUR Call / USD Put and Short EUR Put / USD Call. Do they refer to the delta? and how do I know in which way to adjust the strike of the sold option in order to make it more valuable/ less valuable?

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    $\begingroup$ In reference to an FX quotation such as EURUSD, LHS refers to the underlying or base or transacted currency the EUR, and RHS refers to the numeraire or quote currency i.e. the USD. Then for options the "RHS Delta" would be the USD delta etc. and similarly for "RHS strike" etc. $\endgroup$
    – nbbo2
    Nov 28, 2022 at 9:40
  • $\begingroup$ For a call the lower the strike the more costly the option, for a put the higher the strike the more costly the option. In both cases the more ITM, the more costly. $\endgroup$
    – nbbo2
    Nov 28, 2022 at 11:40
  • $\begingroup$ The Dual Delta of an option gives you a first order approximation of how much an option's value would increase if you move the strike a small amount. $\endgroup$
    – nbbo2
    Nov 28, 2022 at 11:53

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