The foreign exchange or forex (FX) market enables investors to trade currencies against one another. FX options give holders the right but not the obligation to exchange one currency for another at a pre-agreed exchange rate or strike price on a specified future date (the expiry date). There is a range of options available, depending on the desired strike price and expiry date for the currencies being traded. This article presents a summary of notable FX option expiries for April 5, 2021, as reported by the Depository Trust and Clearing Corporation (DTCC).
FX option expiries are a key aspect of the forex market, as they reflect the market’s expectations of where a currency pair’s exchange rate could move in the future. Professional traders and investment managers use this information to make informed decisions on their FX exposure and to hedge their currency risk.
Here’s a list of notable FX option expiries for several major currency pairs, sorted by their expiry date:
EUR/USD:
EUR/USD is the most traded currency pair globally, representing the exchange rate between the Euro and the US Dollar.
– An option with a strike price of 1.0900 with an expiry date of April 5, 2021, has a total outstanding amount of 4.29 billion Euros (EUR).
– An option with a strike price of 1.1000 with an expiry date of April 5, 2021, has a total outstanding amount of 2.17 billion Euros (EUR).
– An option with a strike price of 1.0950 with an expiry date of April 5, 2021, has a total outstanding amount of 2 billion Euros (EUR).
GBP/USD:
GBP/USD represents the exchange rate between the British Pound and the US Dollar.
No significant GBP/USD option expiries are reported for April 5, 2021.
USD/JPY:
USD/JPY is the exchange rate between the US Dollar and the Japanese Yen.
– An option with a strike price of 131.00 with an expiry date of April 5, 2021, has a total outstanding amount of 1.17 billion US Dollars (USD).
– An option with a strike price of 133.00 with an expiry date of April 5, 2021, has a total outstanding amount of 1.32 billion US Dollars (USD).
AUD/USD:
AUD/USD represents the exchange rate between the Australian Dollar and the US Dollar.
No significant AUD/USD option expiries are reported for April 5, 2021.
USD/CAD:
USD/CAD is the exchange rate between the US Dollar and the Canadian Dollar.
No significant USD/CAD option expiries are reported for April 5, 2021.
NZD/USD:
NZD/USD represents the exchange rate between the New Zealand Dollar and the US Dollar.
No significant NZD/USD option expiries are reported for April 5, 2021.
EUR/GBP:
EUR/GBP is the exchange rate between the Euro and the British Pound.
No significant EUR/GBP option expiries are reported for April 5, 2021.
In summary, there are several significant FX option expiries on April 5, 2021, as reported by the DTCC. Among the currency pairs, the EUR/USD and USD/JPY pairs have the largest outstanding amounts for options expiring on that date. Forex traders and investors will closely watch these expiries to get a better understanding of market expectations and to manage their FX exposure.
It is important to note that option expiries are just one factor that influences currency movements. Other factors, such as economic data releases, geopolitical events, and central bank decisions, can also impact exchange rates. However, option expiries provide useful information on where the market sees potential support or resistance levels, and understanding these levels can help traders and investors make more informed decisions.
In conclusion, FX option expiries offer valuable information for traders and investors in the forex market. By understanding notable expiries for specific currency pairs, market participants can gain insights into market expectations and potential support or resistance levels. This information can help in making informed decisions regarding FX exposure and hedging currency risk.
