Today’s forex option expiries for the 10 am (15.00 GMT) New York cut 23 November 2017
Well, well, well, guess what’s popped up? Yesterday I surmised that we could see some barrier chatter in USDJPY at 110.00 and lo and behold, we’ve now got confirmation that there is. What’s also worth noting is that 820m of the 111’s, the 575m at 110.70 & the 716m at 109.55/65 are all put options. Usually it’s a pretty mixed bag. The 111’s are particularly interesting given where we are in spot right now. If the buyer wants to get into profit they need to get the price below at expiry, so we know what direction that will be from here. There’s no guarantees that will happen but given the thinner liquidity due to the US thanksgiving holiday, it may cost options players less money than usual to move prices in their favour. We have seen some substantial and definitive options related moves this week which further highlights that liquidity may not be at it’s best right now.
For info on how we may use this information to grab a trade, read here.
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One thing I don’t understand is when the US are in holidays , is the lack of liquidity in the afternoon. In the morning it’s normal, liquidity. Same actors are here in the afternoon, UK and others. So why there is a lack of liquidity?
“One thing I don’t understand is when the US are in holidays , is the lack of liquidity in the afternoon”
Do you mean in the US or UK/EU afternoon? If you mean the UK afternoon, the UK/EU session is the most liquid, if not purely because of the size and amount of countries participating. It’s also a time thing as the UK/EU session cross over with the last of the Asian session. That’s one of the reason why London became the main financial centre in the old days because its position spanned across both Eastern and Western markets