I'm an avid follower of the EURUSD thread, because apart from the trolls and garbage, some quality info is also to be found in that thread. Something I've noticed, is that sometimes people refer to "option expiry". This should have some kind of impact I imagine, however I don't know how.
Today I read this in my tradeaccount:
Is there anybody who could explain, as simply as possible, the effect of an option expiry for EURUSD at 1.08, given that the price currently is FOR EXAMPLE 1.075 (I know it's higher now)?
Today I read this in my tradeaccount:
QuoteDisliked
- EUR/USD nears 1.0800 option expiries for NY cut (EUR 3bln)
- Delta hedging could help contain nearby/limit any potential gains above
- DTCC shows a further EUR 677mln expiry at 1.0800 tomorrow
Source: Thomson Reuters
Is there anybody who could explain, as simply as possible, the effect of an option expiry for EURUSD at 1.08, given that the price currently is FOR EXAMPLE 1.075 (I know it's higher now)?