FX Options Insights 20/01/25
The cash hedging of soon-to-expire FX option strikes can influence price movements, reinforcing support and resistance levels while possibly attracting FX prices toward key strikes before the 10 a.m. New York cut expiries. Tracking these critical levels offers valuable insights into potential price movements and volatility, particularly around expirations involving significant strike positions of $1 billion plus. Below is a summary of significant option strike expiries this week across major currency pairs:
EUR/USD Strike Expiries
- Monday:
- 1.0200 (€1.3 billion)
- 1.0300-05 (€2.9 billion)
- 1.0325-30 (€1.8 billion)
- Tuesday:
- 1.0150 (€1.7 billion)
- 1.0220 (€1.2 billion)
- 1.0300 (€1 billion)
- 1.0325 (€4.1 billion)
- 1.0400 (€1.8 billion)
- 1.0420 (€1.5 billion)
- Wednesday:
- 1.0270 (€1.3 billion)
- Thursday:
- 1.0150 (€2.7 billion)
- 1.0200 (€4.6 billion)
- 1.0295-1.0300 (€3.1 billion)
- 1.0400 (€2.3 billion)
- Friday:
- 1.0350 (€2 billion)
GBP/USD Strike Expiries
- Monday:
- 1.2050 (£400 million)
- 1.2100 (£620 million)
- 1.2250 (£300 million)
- 1.2300 (£786 million)
AUD/USD Strike Expiries
- Monday:
- 0.6185 (A$780 million)
- Tuesday:
- 0.6200 (A$700 million)
- Wednesday:
- 0.6210 (A$2.2 billion)
- Thursday:
- 0.6200-05 (A$1.8 billion)
- 0.6245-50 (A$1.1 billion)
USD/JPY Strike Expiries
- Tuesday:
- 156.00-05 ($2.3 billion)
- 156.50 ($1 billion)
- Wednesday:
- 155.50 ($1.1 billion)
- Thursday:
- 155.00 ($2.1 billion)
EUR/JPY Strike Expiries
- Tuesday:
- 159.40 (€1.3 billion)
- 166.20 (€1.2 billion)
- Wednesday:
- 165.50 (€765 million)
- Thursday:
- 166.05 (€823 million)
- Friday:
- 155.00 (€900 million)
AUD/JPY Strike Expiries
- Thursday:
- 99.80-99.95 (A$1.4 billion)
GBP/JPY Strike Expiry
- Thursday:
- 190.00 (£580 million)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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!