Thank you for visiting the Forex Academy FX Options market combined volume expiries section. Each day, where available, we will bring you notable maturities in FX Options of amounts of $100 million-plus, and where these large combined maturities at specified currency exchange rates often have a magnetic effect on price action, especially in the hours leading to their maturities, which happens daily at 10.00 AM Eastern time. This is because the big institutional players hedge their positions accordingly. Each option expiry should be considered ‘in-play’ with a good chance of a strike if labeled in red, still in play and a possible strike if labeled in orange and ‘out of play’ and an unlikely strike if labeled in blue, with regard to the likelihood of price action meeting the strike price at maturity.
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FX option expiries for Wednesday, August 19 at the 10 am NY cut
-EUR/USD euro amount
- 1.1900 1.7bn
EURUSD is oversold nut not finding early buyers in the European session. Eurozone CPI numbers due up shortly may add weight to the next directional push. Otherwise, the bull trend is looking tired.
-USD/JPY USD amount
- 104.00 1.0bn
- 104.50 360m
- 105.00 962m
- 105.25 530m
- 105.80 480m
- 106.00 374m
- 106.50 450m
USDJPY is overbought after a pullback from an extensive bear rally with the Yen being bought as a safe haven currency. If the US dollar takes a breather from its recent battering we should see the current exchange rate hold in this area.
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As you can see on the preferred 1-hour chart(s), we have also plotted the expiration levels at the various exchange rate maturities and we have also labeled in red, orange, and blue. Therefore, if you see option expiry exchange rates labeled in red these should be considered in-play because we believe there is a greater chance of the expiry maturing at these levels based on technical analysis at the time of writing. There is still a lesser possibility of a strike if they are in orange and so these are ‘in-play’ too. However, if we have labeled them in blue, they should be considered ‘not in-play’ and therefore price action would be unlikely to reach these levels, which are often referred to as Strikes, at the time of the 10 AM New York cut.
Our technical analysis is based on exchange rates which may be several hours earlier in the day and may not reflect price action at the time of the maturities. Also, we have not factored in economic data releases or keynote speeches by policymakers, or potential market volatility leading up to the cut.
Although we have added some technical analysis, we suggest you take the levels and plot them onto your own trading charts and incorporate the information into your own trading methodology in order to use the information to your advantage. Remember the higher the amount, the larger the gravitational pull towards the exchange rate maturity at 10:00 AM Eastern time.
If you want to learn how forex option expiries affect price action in the spot FX market see our educational article by clicking here: https://bit.ly/2VR2Nji
DISCLAIMER: Please note that this information is for educational purposes. Also, the maturities will look more or less likely to become a strike at 10 AM NY time due to exchange rate fluctuations resulting in a different perspective with regard to technical analysis, and also due to upcoming economic data releases for the associated pairs.
One reply on “FX Options Market Combined Volume Expiries for 19th August 2020”
Interesting to see where EU is at the end of the week