Home Forex Market Analysis Forex Options FX Options Market Combined Volume Expiries for 20th August 2020

FX Options Market Combined Volume Expiries for 20th August 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 Thursday, August 20 at the 10 am NY cut

-EUR/USD euro amounts

  •  1.1750 797m
  •  1.1770 585m
  •  1.1800 833m
  •  1.1840 584m
  •  1.1850 1.9bn
  •  1.1900 1.4bn
  •  1.1950 1.3bn

EURUSD is consolidating after the push lower.

-USD/JPY USD amount

  •  107.00 1.2bn

USDJPY is consolidating. The next move will likely be on the back of US data out later. The option at 107.00 is out of play.

-GBP/USD GBP amounts

  •  1.3100 231m
  •  1.3110 214m

GBPUSD is caught in a bear trend. The directional bias remains tilted to the downside, but the push may only come after US jobs data out later.

-AUD/USD AUD amount

  •  0.7120 566m

AUSUSD is off its lows and finding support. If the 0.7150 level can be breached to the downside it will leave the door open for a strike at the New York cut for the only option here today.

-USD/CADn USD amount

  •  1.3250 660m

USDCAD is in a pullback from its high. If the resistance line is breached at 1.3232 the option expiry will be on the cards. Again, the US data will be important.

-NZD/USD NZD amount

  •  0.6555 241m

NZDUSD price action is in the vicinity of the option. The pair will follow US dollar strength or weakness during the European session. US jobs data will be key to the next trend.

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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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