FX Options Insights 25/11/24
In addition to strengthening surrounding support and resistance levels, cash hedging of soon-to-expire FX option strikes may also have a magnetic impact on FX price activity leading up to each day's 10-am New York cut expiry. Due to the U.S. Thanksgiving break, there are fewer strikes this week overall, but Monday has a lot of strikes.
Monday's 1.0425 and 1.0435–40 EUR/USD strikes, with 2.2 billion euros each, and 1.0485–1.0500 EUR/USD strikes, with 2.2 billion euros each, are the biggest. On Tuesday, they are trading at 1.0500 on 1.3 billion euros and at 1.0415 and 1.0475 on 1 billion euros each. On three billion euros, Wednesday's are at 1.0410, on four billion euros, 1.0500, and on five billion euros, 1.0600-10. A strike of 1.0485 on 1.2 billion euros, 1.0500 on 1.2 billion euros, and 1.0600 on 1.8 billion euros are all scheduled on Friday. With the exception of Monday's 0.9395-0.9400 strikes on 314 million euros, there are not many EUR/CHF strikes that expire until Wednesday at 0.8900 on $420 million. Wednesday at 11.50 on 513 million euros and Friday at 11.51 on 496 million euros are the expiration dates of the EUR/SEK strikes.
On 769 million pounds, the biggest GBP/USD strikes expire on Wednesday at 1.2600. There are more EUR/GBP strike expiries available: 543 million on Monday at 0.8300, 465 million on Tuesday at 0.8375, and 793 million on Wednesday at 0.8405-10. Only Wednesday is available for AUD/USD strike expiries, with A$1.6 billion at 0.6650 and A$864 million at 0.6570-80. Monday at 0.6000 on NZ$1.8 billion, Wednesday at 0.5750 on NZ$1 billion, 0.5835-40 on NZ$ 628 million, and at 0.5865 on NZ$ 550 million are the largest NZD/USD hits.
The USD/CAD strike expirations for this week are Friday at 1.3900-05 on $740 million, Monday at 1.3925 on $550 million, and 1.4015 on $485 million. The standout strikes on Wednesday at 153.00 on $2.9 billion, 155.70 on $886 million, and 156.00 on $894 million are among the very few USD/JPY strike expiries. On Wednesday, the EUR/JPY strike expires at 167.30 on 1.1 billion euros.
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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!