Forex option contract expiries casting a shadow again

Author: Mike Paterson | Category: Forex Orders

Large option expiries in play again today 21 April

Once again we have some large option contracts rolling off today with EURUSD,USDJPY and AUDUSD particularly in focus.

EURUSD: 1.0680 (803m)1.0700-10 (1.7bln) 1.0725 (860m)1.0750 (531m) 1.0800 (620m)

USDJPY: 108.00 (USD 1.1bln) 108.50 (544m) 109.00 (651m) 109.15-25 (530m) 110.00 (782m)

AUDUSD: 0.7515-25 (528m)

Given the limited liquidity on NZDUSD we can't ignore the smaller (NZD 357m) interest at 0.7025 either.

I have little doubt that the large 109.00 expiries yesterday had a hand in the USDJPY volatility between 13.00 and expiry time, albeit Kuroda's BBG interview played its part too. Coincidental timing ? Oooh, there's one for the conspiracy theorists.

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. The actual amounts can also increase right up to expiry as new contracts are created.

For my latest post on how to use this info click here.