Options Expiry

This is a discussion on Options Expiry within the Forex Discussion forums, part of the Forex Markets category; Does anyone follow options expiry? Have any ideas on it? I've seen some rather aggressive moves in stocks in the ...

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Join Date: May 2004
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Options Expiry

Does anyone follow options expiry? Have any ideas on it?

I've seen some rather aggressive moves in stocks in the lead up to expiry and the last few months have been similar in FX.

First instance was the push in GBP/USD to 2.065? and by the next expiry a month later it was being squeezed as close to 2.00 as possible. Now, the same thing seems to be happening in the EUR/USD (had it not been for the northern rock situ, the GBP would again be up near the 2.05 level as it topped at 2.03.

Following the expiry today, I think we'll see a correction in the EUR/USD.
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Saint,

I only spoke to you only a few minutes ago.

There are a lot of OTC fx options, where parties attempt to defend their respective levels. This may be one factor. Sorry I can't expand.

Grant.
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