Home Forex Market Analysis Forex Options FX Options Market Combined Volume Expiries for 21st August 2020

FX Options Market Combined Volume Expiries for 21st 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 Friday, August 21st at the 10 am NY cut

-EUR/USD euro amount

  •  1.1750 534m
  •  1.1875 719m
  •  1.2000 546m

EURUSD pair failed to retest the 1.1900 level and is triggering stops in a renewed bear trend. Euro area and US data all out later will be important for the pair and create volatility.

-USD/JPY USD amount

  •  104.50 910m (not on the chart as out of play)
  •  105.00 551m
  •  106.00 747m
  •  107.10 680m

USDJPY is in a low volume bear trend. US data up later will prove key for the pair in the current market turmoil.

-GBP/USD GBP amount

  •  1.3090 201m

GBPUSD good retail sales numbers gave the Pound a lift today but a possible double top looms. It will be all about the US dollar from here. The option is out of play.

-USD/CAD USD amounts

  •  1.3225 505m
  •  1.3250 1.4bn

USDCAD is bouncing off of a line of support and trading in a narrow range. US and CAD data up later will test the pair.

-NZD/USD NZD amount

  •  0.6555 241m
  •  0.6580 301m

NZDUSD found resistance after a pullback from a strong bear trend. USD will rule today, with data up later providing the impetus for the next move.

-EUR/GBP euro amount

  •  0.9050 722m

EURGBP – The Pound is in control. The option is out of 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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