FX options Insights 09/12/24
Cash hedging of approaching FX option strikes can bolster nearby support and resistance levels while potentially drawing FX price movements toward the daily 10 a.m. New York cut expiry. This week features numerous significant strikes.
For EUR/USD, notable expirations include Tuesday at 1.0500 with 1.4 billion euros, 1.0515-25 with 1.1 billion euros, and 1.0600 with 2 billion euros. On Wednesday, significant levels are at 1.0490-1.0500 with 2.8 billion euros and 1.0650-60 with 1.8 billion euros. Thursday shows strikes at 1.0550 (1.4 billion euros), 1.0575-85 (1.2 billion euros), 1.0600 (1.4 billion euros), and 1.0620-25 (1.2 billion euros). Friday will see the largest strikes at 1.0400 (4 billion euros), 1.0500 (5.7 billion euros), 1.0550 (1.3 billion euros), 1.0600 (3.7 billion euros), and 1.0700 (5 billion euros).
The largest strikes for USD/CHF will expire on Thursday at 0.8790 with $543 million and on Friday at 0.9000 with $600 million. For EUR/CHF, significant expirations are on Thursday at 0.9320-25 with 485 million euros.
In GBP/USD, the biggest strikes this week are on Wednesday at 1.2725 with 700 million pounds and on Friday in EUR/GBP at 0.8185 with 693 million euros.
Noteworthy expirations for AUD/USD include Tuesday at 0.6500 with A$1.2 billion, Wednesday at 0.6350 with A$1 billion and at 0.6450 with A$704 million, and Thursday at 0.6450 (A$1.2 billion) and 0.6500 (A$943 million). For NZD/USD, expirations are on Wednesday at 0.5900 with NZ$655 million and Thursday at 0.6060 with NZ$1.3 billion.
For USD/CAD, the largest strikes will expire on Thursday at 1.4100 and 1.4230, each with $1 billion, and on Friday at 1.3975, 1.4000, 1.4225, and 1.4275, each also with $1 billion.
Lastly, significant USD/JPY expirations are expected on Tuesday at 151.90-152.00 with $1.1 billion, Wednesday at 148.75 ($1.1 billion) and 151.60 ($800 million), Thursday at 149.80 ($736 million), 152.00 ($800 million), and 152.70 ($1.1 billion), and Friday at 150.00 ($1 billion) and 152.60 ($750 million).
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!