Which option pricing formula do you guys use to figure out implied vols on the Bund options? Black76?
I'm with The Breaker here. Every now and then a market has a monster move based on drastically changing economic circumstances. The bund is currently in such as move. This could just be the start of it.
Since it is an option on a future you should use Black 76. If you do a search there is a recent thread where the process of calculating iv is discussed.