Hedge funds are increasingly using currency options to bet on a stronger South Korean won and Chinese yuan, driven by improved risk sentiment following the US-Iran ceasefire and falling oil prices. Currency options allow investors to hedge against volatility while speculating on currency movements. The ceasefire reduces geopolitical risk, potentially easing oil market tensions and boosting risk appetite. This shift reflects market confidence that lower oil prices could support Asian currencies, though won yuan movements remain closely tied to broader risk-on flows. Hedge funds are positioning for a potential yuan won rebound as economic optimism grows.