A decent gathering in USDJPY – Forex options expiries 9 August 2018

Forex options expiring at the 10am (15.00 GMT) New York cut 9 August 2018

A few billion going off in close proximity in USDJPY between 110.90 & 111.50. A sizeable expiry in USDCNH too.

Forex option expiries

Option premiums peak as downside fears ease (Full Story), but still elevated
Euro hedgers can benefit from downside risk by adding barriers to EUR puts
3-mth 1.15 EUR put 106 pips, break-even 1.1394 at expiry (spot ref 1.1600)
However, add a 1.1200 knock out barrier and premium reduced to just 10 pips
Hedge protects against more limited sub 1.15 decline, adjust strikes to suit
3mth 1.15 EUR put with KO 1.13 just 3 pips, or 1.15 with 1.10 KO 40 pips
Hedge allows holder to sell spot at strike at expiry, if barrier intact