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Option Expiries - How do they affect the FX market

  • #1
  • First Post: Apr 20, 2006 8:17am Apr 20, 2006 8:17am
Can someone in simple terms explain how the expiries on options affects the forex market? Thank you!
Always wait for the opportune moment… just be careful not to miss it.
  • #2
  • Apr 20, 2006 8:33am Apr 20, 2006 8:33am
Quoting fxvision
Can someone in simple terms explain how the expiries on options affects the forex market? Thank you!
One reason is that the Major Players {Banks etc} with verry deep pockets utilize {play would be the wrong word} Options extensively. A common Option Strategy is DNT. {Double No Touch} whereby you are saying that the price wil stay between 2 price strikes without touching either. So, if it gets close to one of those strikes, they will do all in their power to defend it. As the Option approaches expiry, the battle can become more fierce.
  • #3
  • Apr 20, 2006 11:09am Apr 20, 2006 11:09am
Interesting. Thanks.
Always wait for the opportune moment… just be careful not to miss it.
  • #4
  • Apr 20, 2006 11:48am Apr 20, 2006 11:48am
Where can one find out what options are out there. In other words where would I look to see these option that are held by the big banks. Is that knowledge available to the general public?
Fdisk Please I just want a few pips. Is that too much to ask?
  • #5
  • Apr 20, 2006 1:04pm Apr 20, 2006 1:04pm
Quoting fdisk
Where can one find out what options are out there. In other words where would I look to see these option that are held by the big banks. Is that knowledge available to the general public?
I think this info is like if brokers tell us where traders have placed stop losses
kiss the trend
  • #6
  • Apr 20, 2006 2:20pm Apr 20, 2006 2:20pm
Quoting fdisk
Where can one find out what options are out there. In other words where would I look to see these option that are held by the big banks. Is that knowledge available to the general public?
I normaly see it on Thomson Newswire, but only as the action gets fierce.

I will say this tho, DNT's normally run between Handle Strikes.
ie. for GBP/USD 1.8100 to 1.7900. All you really need are the Option Expiry dates which can probably be found on the CME website. Globex Currency Options
  • #7
  • Apr 20, 2006 2:22pm Apr 20, 2006 2:22pm
Quoting Bemac
One reason is that the Major Players {Banks etc} with verry deep pockets utilize {play would be the wrong word} Options extensively. A common Option Strategy is DNT. {Double No Touch} whereby you are saying that the price wil stay between 2 price strikes without touching either. So, if it gets close to one of those strikes, they will do all in their power to defend it. As the Option approaches expiry, the battle can become more fierce.
I am still not quite sure how I can use this information to my advantage. For example here is a report I got this morning before the NY open. Are these the levels that are defended?
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  • #8
  • Last Post: Apr 20, 2006 2:35pm Apr 20, 2006 2:35pm
So is there away to see the options that are held and expiring on a daily basis?
Fdisk Please I just want a few pips. Is that too much to ask?
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