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Forex Options

FX Options Market Combined Volume Expiries for 2nd October 2020

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, October 2 at the 10 am NY cut

EUR/USD euro amounts

  •  1.1700 1.2bn
  •  1.1750 2.0bn
  •  1.1800 1.7bn

EURUSD punched through the key 1.17 level overnight, US and Euro data, and the health status of President Trump all important in the next move.

USD/JPY USD amounts

  •  104.50 565m
  •  104.90 410m
  •  105.50 766m

GBP/USD GBP amount

  •  1.2900 202m

GBPUSD remains volatile and unpredictable. Brexit-related negotiations, US data later, and the health status of President Trump all important in the next move.

USD/CAD USD amount

  •  1.3420 518m

USDCAD is overbought, and the option is in play if the previous support line can be breached.

NZD/USD NZD amount

  •  0.6615 210m

NZDUSD is within range of a pullback

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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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By Kevin O'Sullivan

I spent 20 years as an institutional currency broker, working at some of the best broking houses in the world and traded in Cash, Bonds, and Forward Rate Agreements.

In the early 1990's I moved into Spot FX and FX Forwards. I regularly closed deals of $25 million and sometimes up to $1 billion per ticket. Since then I act as an analyst, and commentator and have devised my own Forex educational course.

I also act as an advisor and educator for HNWI, financial institutions in the USA and want to make Forex trading available for new retail traders and seasoned professionals alike.

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