Home Forex Market Analysis Forex Options FX Options Market Combined Volume Expiries for 2 Nd July 2020

FX Options Market Combined Volume Expiries for 2 Nd July 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 July 2 NY cut at 10:00 Eastern Time, via DTCC, can be found below.

– EUR/USD: EUR amounts

  • 1.1135 944m
  • 1.1200 564m
  • 1.1210 1.1bn
  • 1.1230 566m
  • 1.1250 2.4bn
  • 1.1275 508m
  • 1.1300 1.9bn
  • 1.1330 695m
  • 1.1400 524m

EURUSD pair is overbought on the one-hour chart, having broken above a tight range around the 1.12 key level yesterday. Eurozone data and US data including NFP out later may cause more turbulence in the pair.

– GBP/USD: GBP amounts

  • 1.2350 537m
  • 1.2360 248m
  • 1.2450 609m
  • 1.2500 201m

GBPUSD has been on a bull run for 2 days and is just seeing some profit taking at the 1.25 level. Expect more buoyancy but the slew of US data out later will likely cause volatility.

– USD/JPY: USD amounts

  • 106.00 696m
  • 106.50 556m
  • 106.75 440m
  • 107.00 474m
  • 107.50 950m
  • 107.71 450m

USDJPY is consolidating in a tight range on the one-hour chart. Bia to the upside currently with 2 red option expiries within the strike range. US Data may supply the impetus for a fresh breakout later on today.

– AUD/USD: AUD amounts

  • 0.6895 1.8bn

AUDUSD is overbought on the one-hour chart. Just one option expiry is in play.

– USD/CAD: USD amounts

  • 1.3650 535m

USDCAD is in a bull trend but overbought on the one-hour chart. US and Canadian data will play a role in adding volume to the pair which has seen thin trading since the end of June.

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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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