FX Options Insights 29/11/24
The cash hedging of soon-to-expire FX option strikes can enhance nearby support and resistance levels while also potentially attracting FX price movements towards the 10-am New York cut expiry each day. There are several strikes on Friday, with more being introduced for the upcoming week. A total of 2.6 billion euros in 1.0600 option strikes will expire at 10 AM New York time on Friday. Additional hedging activity will be centred around 2.3 billion euros in 1.0625 options, which expire on Monday. The most significant EUR/USD strikes for next week include Tuesday at 1.0500 with 882 million euros and between 1.0565 and 1.0580 with 1.2 billion euros, Wednesday at 1.0525 with 1.5 billion euros, Thursday between 1.0550 and 1.0565 with 2.5 billion euros, and Friday between 1.0450 and 1.0460 with 1.8 billion euros, along with 1.0500 at 1.5 billion euros and 1.0600 at 900 million euros.
For USD/CHF, the largest strikes are on Wednesday at 0.8800 and 0.8900, each around $500 million, and on Thursday between 0.8725 and 0.8730 with $620 million. EUR/CHF has 425 million euros at 0.9270 expiring on Wednesday.
The notable EUR/GBP strike expiries so far are on Wednesday at 0.8320-0.8330 with 650 million euros and 0.8410 with 430 million euros. Larger GBP/USD strike expiries are on Wednesday at 1.2500 with 550 million pounds and Thursday at 1.2495-1.2500 with 1.1 billion pounds, 1.2600 with 605 million pounds, and 1.2750 with 665 million pounds.
The largest AUD/USD strike expiries to date are on Wednesday at 0.6440-0.6450 with A$1.6 billion and 0.6500 with A$1.1 billion, and on Thursday at 0.6590-0.6600 with A$1.6 billion and 0.6620 with A$800 million. There are significant AUD/NZD strikes expiring on Monday at 1.1100 with A$1 billion and Tuesday at 1.1175 with A$1.2 billion.
The only notable USD/CAD strikes of any size are on Tuesday at 1.3900 with $767 million and Friday at 1.4200 with $813 million.
For USD/JPY, the largest strikes within the 148.00-153.00 range are on Monday at 150.50 with $640 million and 152.00 with $590 million, on Tuesday at 149.00 with $450 million and 151.80 with $660 million, on Wednesday between 151.15 and 151.25 with $950 million, on Thursday at 151.75 with $560 million, and on Friday at 152.00-152.10 with $1 billion.
There are two significant AUD/JPY strikes expiring on Thursday at 98.00 and 100.00, each with A$1 billion.
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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!