Event Risks Ahead but in the Meantime Option Expiries may Play a Role

With the Federal Reserve not making its policy announcement until late into the New York session on Wednesday and polling in the Dutch elections not closing until 2000GMT, traders might wonder if the defining features of trading ahead of those two major events may be partly shaped by the existence of any major option expiries that will roll off at 1500GMT.

ThomsonReuters IFR (TRIFR) have identified a number of levels and amounts that could exercise an influence in both euro/dollar (EURUSD) and dollar/yen (USDJPY).In euro/dollar, TRIFR have noted more than 500 million euros of expiries on Wednesday at 1.0600 with more than 900 million in the 1.0650-55 range. Above that TRIFR see another 1 billion euros rolling off in the 1.0680-1.0700 area.

Below 1.0600, there are also large interests rolling off today. TRIFR have identified 1.3 billion euros of expiries at 1.0575-80 with another 2 billion stretched over the 1.0520-70 level. In dollar/yen TRIFR write of almost 1.9 billion dollars of expiries at 114.50 alone with another 1.6 billion in total between 114.00 and 114.45. Additionally, TRIFR see 800 million dollars of expiries rolling off in the 114.60-75 range, while 115.00 itself sees a cluster of 1.2 billion.

Written by Neal Kimberley, External Currency Analyst.
All financial products traded on margin carry a high degree of risk to your capital. Any forecasts given are not a reliable indicator of future performance and the decision to act on any ideas and suggestions presented is at the sole discretion of the reader.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Tip TV

• 

  Capital Spreads

• 

  The OMG Team

• 

  Guardian Stockbrokers