Home Forex Market Analysis Forex Options FX Options Market Combined Volume Expiries for 16th October 2020

FX Options Market Combined Volume Expiries for 16th October 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 Friday October 16 at the 10am NY cut

EUR/USD (euro amount)

  •  1.1650 888m
  •  1.1700 680m
  •  1.1750 524m
  •  1.1800 2.5bn

EURUSD pair is consolidating around the 1.1700 level, but the US dollar has had a recent push higher and maybe about to pullback, pushing the pair higher.

USD/JPY (USD amount )

  •  104.50 1.6bn
  •  104.75 430m
  •  105.00 2.8bn
  •  105.40 965m
  •  105.70 360m

USDJPY failed to breach the key 105.00 level yesterday and is trading in a tight range not that far from the major support line.

GBP/USD ( GBP  amount)

  •  1.2945 201m
  •  1.2950 282m

GBPUSD, so far the key 1.2900 level is acting as a firm area of support and as long as it holds out the two options look very much in play. Ongoing Brexit negotiations and rumours will trigger volatility.

USD/CAD (USD amount )

  •  1.3220 670m

USDCAD is being squeezed but if the support line holds the option will remain in play.

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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 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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