Beware more massive EUR/USD option expiries next week
Dec 13 (Reuters) -The cash hedging of soon-to-expire FX option strikes may bolster any nearby support and resistance levels, while potentially having a magnetic effect on FX price action towards each day's 10-a.m. New York cut expiry.
Friday sees the biggest EUR/USD strike expiries of 2024, but they are eclipsed by those due at the end of next week.
The largest EUR/USD strikes expiring on Monday are at 1.0400-1.0410 on 1.8 billion euros, 1.0500 on 3 billion euros, 1.0550 on 2.1 billion euros and 1.0600 on 8 billion euros.
Tuesday's strikes are at 1.0400 on 1 billion euros and 1.0525 on 1.6 billion euros; Wednesday's at 1.0500 on 1.2 billion euros; and Thursday's at 1.0400 on 1.8 billion euros, 1.0550-55 on 1.9 billion euros 1.0600 on 2.3 billion euros.
Friday holds the bulk of next week's FX option strike expiries. There are 1.0325 strikes on 3.8 billion euros, 1.0350 strikes on 3.2 billion euros. 1.0400 on 4.2 billion euros, 1.0425-30 on 4 billion euros, 1.0440 on 2.1 billion euros, 1.0450 on 5.4 billion euros, 1.0500 on 8.2 billion euros, 1.0525 on 5.6 billion euros, 1.0550-55 on 4.5 billion euros, 1.0570-80 on 3 billion euros and 1.0600 on 6 billion euros.
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EUR/USD FX option strike expiries Dec 13-20 https://tmsnrt.rs/3Zxs7dS
(Richard Pace is a Reuters market analyst. The views expressed are his own)
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