FX Expiries 27 04 2020
Hello everybody, and thank you for joining us for the daily FX expiries briefing video for the 10 a.m. New York cut today.
If it is your first time with us, the FX currency options market runs in tandem with the spot FX market, but where traders typically place Call and Put trades on the future value of a currency exchange rate and these futures contracts typically run from 1 day to weeks, or months.
Each day we bring you details of the notable FX option expiries where they have an accumulative value of a minimum of $100M + and where quite often these institutional size expiries can act as a magnet for price action in the Spot FX arena leading up to the 10 a.m. cut.
We will also plot the levels on to the relevant charts at the various exchange rates where there are due to expire, and also identify the levels which are in play, and where we believe there is a greater chance of the expiry maturing based on technical analysis at the time of writing, we will label them as hot, warm or cold.
So today we have Option Expires for the EURUSD Pair The levels are all in Euro amounts and are as follows:
• 1.0760 599m
• 1.0800 1.1bn
• 1.0820 504m
Also, there are also Options expiring for USDJPY pair!
The levels are all in US Dollar amounts:
USD/JPY: USD amounts
• 106.75 457m
• 107.00 1.2bn
• 107.50 874m
• 107.55 410m
• 107.60 668m
• 108.00 1.3bn
• 108.35 788m
• 108.40 521m
• 108.50 632m
Also, there are also Options expiring for EURGBP pair Just one key level which is in EURO amount
• 0.8700 775m
As stated, we have color-coded the levels on the chart from COLD WARM HOT with regard to the likelihood of the exchange rate reaching these levels at the 10 a.m. cut based on technical analysis at the time of writing.
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 a.m. Eastern time.
For a detailed explanation of FX options and how they affect price action in the spot forex market, please follow the link to our educational video.