Home Forex Market Analysis Forex Options FX Options Market Combined Volume Expiries for 18th June 2020

FX Options Market Combined Volume Expiries for 18th 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 18 NY cut at 10:00 Eastern Time, via DTCC, can be found below.

– EUR/USD: EUR amounts

  • 1.1100 536m
  • 1.1245 640m
  • 1.1260 711m

EURUSD is overbought on the one hour chart. And the size of the candlesticks over the Asian session indicates that volume is thin. Potential for price action to retest the 1.1200 key level, however, the 1.1250 must be breached first. Key US data out later,

– USD/JPY: USD amounts         

  • 106.00 483m
  • 107.45 356m
  • 108.00 432m

USDJPY finally broke out of its tight consolidation range to the downside and is currently giving back some of that bear run. The options for today all remain out of play. Look out for the US data including Initial Claims later today as the impetus for the next move.

– AUD/USD: AUD amounts       

  •  0.6925 530m

AUDUSD is overbought on the one hour chart. The momentum for a retest of 0.70 to the upside has long run out of steam. A push lower seems likely leaving today’s option expiry out of 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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