we’ve got a sizeable option expiry going off today so I’ve had a look at what’s in store for tomorrow and the rest of the week.
Just picking the choice cuts from a wide selection, we have another lump going off at 1.2600 tomorrow (2.9bn) and around 1.3bn between 1.2475 and 1.2500.
On Friday we could have an interesting day with 3.87bn at 1.2500 and 4.15bn at 1.2550. The numbers aren’t definitive and can change, and we get our figures from various sources, so keep an eye on the option expiry post each day. Bloomers knocks up a handy heat map, although there’s no way of putting the numbers on the bubbles. The big yellow ones are the levels I’ve mentioned.
EUR/USD options 05 11 2014 (green = puts, Yellow = mixed, Blue = calls)
Personally I’m not one to get hung up purely on option levels but these large ones are worth keeping an eye on, if only to explain price behaviour. One big comment from Draghi or a big variation in NFP’s on Friday and the options will likely count for nothing.
You can get more pearls of wisdom on options from this post from Mr P. How to use option expiry info.
As the euro slides on another bought of dollar buying we’re down to 1.2470, so it remains to be seen if the options will have any influence.
