Daily FX Options Expiring by 10 AM New York Cut

EURUSD 1.1800 - 2.3 Billion Euros

Pls what does this really means?

Notice how price pushed towards the 1.1800 option this morning? Usually, option expiries with big monetary values act as price magnets. In todays case, the option barrier in bold at 1.1800 was worth 2.3 billion euros whis is fairly large so it attracted price towards itself.

Wow thanks for sharing sir

EURUSD expiry at 800

3.9 billion worth of option expiries at 1.1900 fr eurusd

For EUR/USD the star expiry for today is at 1.1910 so price could keep attracting to this point. There are other expiry clusters between 1.1875 and 1.1850 but because the us dollar is weak we may nit see much of a downward movement during the European session.

EUR/USD option clusters between 850 to 790 could push price downward during the London session

EURUSD option clusters between 1.1750 and 1.1760 will likely attract price towards them

What’s the implication of this information?

The implication is, if EUR/USD price should start falling today, it will likely fall until it reaches the 1.1750 level. Option barriers always act like price magnets. This is because these Options are usually traded by hedge funds and other big market players. So, as price begins to fall, the market regulators have ruled that to maintain a neutral theta, the market players must also sell. This selling in huge volume by the market players/hedge funds causes the price to drop even further. Mind you if price is falling, it is forbidden by regulators for hedge funds to buy or trade the opposite direction because it will be deemed manipulation. So, when price falls, hedge funds must also sell and vice versa. This effect is what causes option barriers to act as price magnets.

EUR/USD option clusters sit between 1.1805 to 1.1775 and may push price downward during London.

EUR/USD expiry at 1.1850 could draw price downward during Frankfurt session. Remember that it is a public holiday in the USA today (Presidents Day) so the new York session may not be as active as it used to.

Today EUR/USD expiries are seated above at 1.1900 to 1.2000 so we will likely see price push upwards for most of today.

EUR/USD:

1.1900 (EUR1.22bn),

1.2000 (EUR769.2mn),

1.2025 (EUR615.4mn)

USD/JPY:

156.00 (US$1.87bn),

151.00 (US$986.2mn)

USD/CAD:

1.3600 (US$1.11bn),

1.3625 (US$980.7mn),

1.3500 (US$943mn)

AUD/USD:

0.7025 (AUD429.2mn),

0.6750 (AUD399.3mn)

GBP/USD:

1.3560 (GBP317mn)

EUR/USD option expiry cluster sitting between 1.1790 and 1.1750 may push price downward during the Frankfurt/London session.

EURUSD options from 1.1750 to 1.1800 could push price upwards during London

EUR/USD expiry at 1.1845 but there are also PNT trades at 1.1750 so we could see a fall in price during London.

EURUSD expiry for today

EUR/USD

1.1900 (EUR 5.09 bn)

1.1850 (EUR 2.19 bn)

1.1800 (EUR 3.91 bn)

1.1750 (EUR 1.82 bn)

USD/JPY

156.00 (US$ 2.92 bn)

155.00 (US$ 1.80 bn)

GBP/USD

1.3550 (GBP 552.83 mn)

1.3475 (GBP 448.12 mn)

EUR/USD clusters between 1.1825 and 1.1795 mayy push price downward during London.