1.2000 to 1.2175 expires with the price at 1.2150 area
On Tuesday and Wednesday, there are a chunky amount of option expires in the EURUSD.
Option sellers earn the biggest returns when the price settles at a strike price. Buyers want the price to move away from the strike price.
If the buyers are hedging a position, they tend to be less sensitive to the expires. Speculatiave sellers, on the other hand, want to see time value fade and the price to move toward the strike price. To maximize the gains, they may push the spot toward the strike price levels or defend a strike price level if the price trades up or down to that level.
Option expires this week include:
Tuesday, Dec 15:
- 1.2B at 1.2000
- 1.1B at 1.2100
- 1.0B at 1.2175
Wednesday, Dec 16:
- 1.2B at 1.2000
- 1.1B at 1.2100
The current spot price is 1.2155. If the price goes higher, there may be some sellers near the 1.2175 area. If the price declines there may be some buyers at 1.2100. The 1.2000 strikes seem to be safe, but be aware for a bigger move through the 1.2100 level.
