Forex option expiries for the 10am (14.00 GMT) New York cut 31 May 2018
Wow! The board has exploded in billion expiries. EURUSD has 23.09bn going off in a 410pip range. Of that, around 17bn is expiring between 1.1700 & 1.1910. Included in that is a whopping 5.46bn at 1.1800, with size either side. Of that 5.46bn, 4.12bn is puts & the rest is calls.
NZDUSD has a large 2.06bn rolling off at 0.6900. Of that, 862m is calls, 1.20bn is puts.
USDCAD is another with a biggie. 2.83bn expires at 1.2900. 1.76bn calls, 1.08bn puts.
What can we take from all this? EURUSD is going to be the difficult one because there’s large expiries all the way up and down. Who knows what might be defended or attacked? For the rest, it’s going to depend on where prices are nearer to expiry.
This is probably an apt time to give you an explanation of Forex options and their impact on currency markets.
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Hello Ryan,
How are you? Thanks for this post ๐ it is billions for sure
Hi Jerry.
All good thanks, you?
I am well thanks. U are up early? ๐
Ryan,
Can you please email me the details about your trading room if possible? ๐
Don’t know for sure, but I think today will show why I do not like (Euro style) FX options at all (actually I do not like any Euro style option). Wait & see.
Would not be surprised, ending up surprised …
Wow, kiwi 2 bln+, never seen such, EUR 22 bln, sounds crazy!
Hi Ryan,
In the light of recent inflation data EUR correction may be finished?
Hi Mike
There’s a fairly strong level up here around 1.1725/30. For some reason the ’30’s’ (1.1930/1.1830/1.1730) have become resistance levels as we’ve broken through them. I think the euro is having a relief rally but the mark of its strength can be gauged on indicators like the fibs. The 38.2 of the drop from 1.24 is at 1.1855. That’s a world away from here and so not getting close to that level will show the downtrend is still well in place. To trade it, it’s all about asking questions at each level. One could short at 1.1725 with a very tight stop. A low risk trade if we’re wrong and it carries on going up. The same can happen on the other side. Buy tight on the support points.
For those in positions already, the same applies and traders need to question whether something has changed or not, and the same levels apply to gauging that.
Thanks, Ryan:))