It's another day of large option contracts casting a shadow 26 May
Yes folks, believe it or not we've had enough evidence this week, and before, that these expiries do have an impact and we ignore at our peril ( not that I ever do of course having seen the price action play out first hand in my interbank days).
Further to my regular daily post and numerous references in other posts I also highlighted these in Monday in my weekly preview and the amounts have grown since at key levels.
Here's a summary.
- EURUSD:1.1000 (EUR 3.68bln) 1.1050-60 (1bln) 1.1130 (1.2bln)1.1200 (2bln)1.1250 (1.1bln)
- USDJPY: 110.00 (USD 811m) 110.30-40 (691m) 111.00 (1.45bln) 111.25-35 (1.7bln) 111.50 (545m)111.70 (765m) 112.00 (897m)
- AUDUSD: 0.7420-30 (AUD 460m)
Currently we're seeing USDJPY gravitate to 111.00 and EURUSD retreat through 1.1200 by way of example, not to mention AUDUSD holding 0.7420 earlier.
Remember that these are "vanilla" options so still in play right up to expiry at 14.00 GMT on the day even if breached in the meantime, unlike barrier options which cease to be once hit.
For my latest post on how to use this info click here.
Anyhow, I'm off now to make the most of this UK heatwave before the floods descend.
Have a good week-end everyone, thanks for your support/input as always and remember,