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15 Nov 2013
Massive FX options expirations day on Friday
FXstreet.com (Barcelona) - There will be massive option expiring on Friday, which suggests prices are likely not to deviate much from the stated levels above as they tend to act as a barrier until the option expires. Below are the key levels to watch.
In USD/JPY, 100.00 has over $1.8B, with 99.65 seeing an amount of $932m, while 99.50 level has options worth $700m. On the
EUR/USD front, 1.3400, 1.3450 (approx $750m) and 1.3420 are the levels to watch. On the AUD/USD, 0.9400 ($1.07B), 0.9350 ($250m) are due to expire, although the levels look fairly safe at the moment, with AUD/USD depressed near 0.93. On GBP/USD, there will be a combination of option expiries between 1.59 and 1.62, while NZD/USD sees $850m at 0.8250, very large.
According to Adam Button, US-lead Editor at Forexlive: "I’m not sure if tomorrow is an especially important day for some reason or if it’s simply better position reporting due to Dodd-Frank. It’s the third Friday of the month, which is always big in options but so many expiries around $1B is special. Today’s expiries held the market in check and I would be surprised if it wasn’t the same thing tomorrow. Something like USD/CAD is getting close to the buy zone."
In USD/JPY, 100.00 has over $1.8B, with 99.65 seeing an amount of $932m, while 99.50 level has options worth $700m. On the
EUR/USD front, 1.3400, 1.3450 (approx $750m) and 1.3420 are the levels to watch. On the AUD/USD, 0.9400 ($1.07B), 0.9350 ($250m) are due to expire, although the levels look fairly safe at the moment, with AUD/USD depressed near 0.93. On GBP/USD, there will be a combination of option expiries between 1.59 and 1.62, while NZD/USD sees $850m at 0.8250, very large.
According to Adam Button, US-lead Editor at Forexlive: "I’m not sure if tomorrow is an especially important day for some reason or if it’s simply better position reporting due to Dodd-Frank. It’s the third Friday of the month, which is always big in options but so many expiries around $1B is special. Today’s expiries held the market in check and I would be surprised if it wasn’t the same thing tomorrow. Something like USD/CAD is getting close to the buy zone."