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 17 NY cut at 10:00 Eastern Time, via DTCC, can be found below.
– EUR/USD: EUR amounts
- 1.1300 825m
- 1.1325 862m
EURUSD is stuck in a range between 1.1220 and 1.1400 during June. Overnight saw the pair consolidate in a tight range at section A, and it is currently breaking out of that range and moving higher, although overbought n the one hour chart. Both option maturities are in play. Watch out for Eurozone and US data before the cut.
– USD/JPY: USD amounts
- 107.25 1.1bn
- 107.50 363m
USDJPY pair is in a consolidation phase which has spilled over from yesterday. Both options remain in play with a small bias towards the 107.50 maturity. US data out later may help the pair find impetus for a break from the tight range.
– USD/CAD: USD amounts
- 1.3500 780m
USDCAD has flirted with the key 1.3500 exchange rate but not punched through for over a week. Currently in a descending wedge formation. The squeeze could well push is lower than the support level. The 1.3500 maturity remains in play.
– EUR/GBP: EUR amounts
- 0.8925 483m
The EURGBP has resisted a move above the key 0.90 level and found strong resistance there. Currently flagging bull run arrears to be running out of steam and the pair is overbought on the one-hour time frame. There is potential for a second attempt at the support line we have highlighted at around 0.8915 which would leave our maturity 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.
