By Richard Pace — May 16 - 05:45 AM
• The cash hedging of FX option strikes can draw/contain FX spot pre expiry
• There are a massive 7-billion euros of 1.1200-30 strikes expiring Friday
• Result is big hedging flows to help contain while little else excites FX
• Larger strikes expiring so far next week - May 20 1.1195-1.1200 (1.5bln)
• 1.1240-50 (1.8bln). May 21 1.1250 (1.8bln). May 22 1.1175 (2bln)
• Related comment - FX options offer clues on the EUR/USD outlook
EUR/USD FX option strike expiries - May 16-23
(Richard Pace is a Reuters market analyst. The views expressed are his own)
Source:
London Stock Exchange Group | Thomson Reuters
