Home Forex Market Analysis Forex Options FX Options Market Combined Volume Expiries for 11th June 2020

FX Options Market Combined Volume Expiries for 11th June 2020

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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 labelled in red, still in play and a possible strike if labelled in orange and ‘out of play’ and an unlikely strike if labelled in blue, with regard to the likelihood of price action meeting the strike price at maturity.

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FX option expiries for June 11 NY cut at 10:00 Eastern Time, via DTCC, can be found below.

– EUR/USD: EUR amounts

  • 1.1250 915m
  • 1.1350 642m

The EURUSD pair has rejected a multi-month high after the FOMC meeting yesterday. And the current price action on our one hour chart is oversold at position A, but the pair looks to be ignoring this and testing 1.1350 to the downside. If this can hold there is a strong chance the pair will conform to technical analysis until the US data including initial jobless claims out later today when the 1.1350 maturity will come into play.

– GBP/USD: GBP amounts        

  • 1.2695 239m

The GBPUSD pair is oversold on the one hour chart and is finding support at 1.2653 and which shows long tails at this level for the 3 previous candles. US data later today may spur a break from these levels. The 1.2695 maturity remains in play.

– USD/JPY: USD amounts         

  • 107.50 373m
  • 108.00 432m

The USDJPY pair is approaching overbought on the one hour chart. Yesterday’s bearish price action which we brought you broke through the A B C wedge formation. Watch out for a push back to one of the support lines during the European and US sessions and where the 107.50 maturity will remain in play. US economic data release will affect the price action before the cut.

– NZD/USD: NZD amounts

  • 0.6615 233m

NZDUSD pair is trading off of a double bottom support line at 0.6468 and is oversold on the one hour chart It is likely to struggle to find the impetus to reach the maturity without a negative market reaction to the initial jobless claims fro the USA later today.

– EUR/GBP: EUR amounts

  • 0.8995 604m

The EURGBP pair was overbought at 0.8916 (position A) on the one hour chart having found strong support at 0.8890 The O/B was ignored. The pair remains in a bull trend. Today’s maturity remains in play.

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As you can see on the charts we have also plotted the expiration levels at the various exchange rate maturities and we have also labelled in red, orange and blue. Therefore, if you see option expiry exchange rates labelled 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 labelled 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.

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