Home Forex Market Analysis Forex Options FX Options Market Combined Volume Expiries for 24th September 2020

FX Options Market Combined Volume Expiries for 24th September 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 Tuesday September 24 at the 10am NY cut

 EUR/USD (euro amount )

  •  1.1600 975m
  •  1.1610 625m
  •  1.1625 523m
  •  1.1700 844m
  •  1.1750 1.1bn
  •  1.1800 2.7bn

EURUSD pair found support at 1.1650.  A pullback to the 1.17 area seems likely. Euro speeches and US Jobless claims up later will add to some extra volatility in the pair.

USD/JPY (USD)

  •  104.00 1.3bn
  •  104.50 471m
  •  104.55 438m
  •  104.90 830m
  •  105.00 1.8bn
  •  105.10 844m
  •  105.25 570m
  •  105.70 470m
  •  105.75 900m
  •  106.10 555m
  •  106.18 444m
  •  106.25 548m
  •  106.75 1.6bn
  •  106.87 750m

USDJPY is in a trading range of 105.00 to 105.50 and there is a huge cluster of option expiries within this area. US jobless claims up later may push the pair out of this range.

GBP/USD (GBP)

  •  1.2705 271m

GBPUSD remains on the backfoot. The pair is oversold and the 1.2705 option is in play. Lots of events may throw the pair off-balance: Chancellor lays out plans for an extension of the furlough program and US jobs data out later. Brexit negotiations drag on. Expect volatility.

AUD/USD (AUD)

  •  0.7100 1.0bn
  •  0.7110 703m

AUSUSD is oversold but remains in a bear trend. Potential for a pullback to the 0.71 level if US dollar buyers dry up after the bull run.

NZD/USD (NZD)

  •  0.6600 270m

NZDUSD is caught in a bear trend and is oversold. Potential for a reversal at the 0.65 level.

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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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