Beware the bigger G10 FX option strikes expiring next week

August 4, 2023

The cash hedging of soon-to-expire FX option strikes can often influence FX price action by adding to any nearby support/resistance and can potentially draw and contain spot, as we saw with EUR/USD on Thursday, so it is worth knowing where the bigger strikes reside and when they expire.

There are some big strikes expiring across G10 FX after Friday’s U.S. jobs data. Stand out EUR/USD FX option strikes expiring next week start on Monday at 1.0940-50 on 1.5-billion euros, Tuesday has 1.4-billion euros at 1.0870, 662-million at 1.0900 and 653-million euros at 1.0970. Wednesday has 1.6-billion euros at 1.0890 and 673-million euros at 1.0980. Thursday’s biggest strikes are at 1.0890-1.0900 on 1.7-billion euros, 1.0925 on 606-million euros, between 1.0990 and 1.1005 on 1.3-billion euros and 1.1020-25 on 1.3-billion euros.

Stand out USD/CHF strikes are on Thursday at 0.8650-60 on $690-million and 0.8975 on $400-million. GBP/USD strike expiries are at 1.2600 on £608-million Wednesday, with another 431-million 1.2600 on Thursday. Stand out EUR/GBP strikes are on Monday at 0.8550 on 1.3-billion euros, 0.8620 on 610-million, 0.8650 on 484-million, 0.8675 on 540-million and 0.8700 on 790-million euros. Tuesday has 818-million euros at 0.8700 and another 400-million euros at 0.8400 on Friday.

The biggest AUD/USD strikes are on Tuesday at 0.6450 on $1.3-billion and on Thursday at 0.6565 on $1-billion and 0.6675 on $1.1-billion. NZD/USD has $480-million 0.6130 and $561-million 0.6235 on Tuesday. USD/CAD has a massive $3-billion on Friday at 1.3325.

Stand out USD/JPY strikes next week are on Monday at 141.50 on $589-million, 143.00 on $801-million and 144.00 on $1.1-billion. Wednesday has $881-million at 142.00, $1.4-billion at 142.75 and $1.6-billion at 143.00.

“The market doesn’t beat them. They beat themselves. Because although they have brains they cannot sit tight.” – Jesse Livermore

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