Forex (FX) options expiries can have a significant impact on currency markets, especially when high-volume contracts are set to expire at critical price levels. Traders and analysts closely monitor these expiries to gauge potential price movements and volatility spikes. Here’s a breakdown of some notable FX options expiries coming up this Monday, along with the strike prices and volumes that may influence trading.

EUR/USD Expiries

The euro-dollar (EUR/USD) pair has several important expiries at different price levels, ranging from 1.0850 down to 1.0550. Here are the specifics:

• 1.0850: 628 million
• 1.0800/10: 736 million
• 1.0780: 634 million
• 1.0750/60: 682 million
• 1.0690/1.0700: 769 million
• 1.0670/80: 618 million
• 1.0550/60: 835 million

These values indicate that there is substantial interest in the 1.0550–1.0850 range. High volumes near these levels suggest that EUR/USD could see increased volatility as traders position themselves around these strikes, especially as contracts nearing expiration may prompt hedging activity. The largest expiries are clustered between 1.0690 and 1.0800, which could act as significant support or resistance levels as we head into Monday’s session.

AUD/USD Expiry

For the Australian dollar (AUD/USD), there’s a notable expiry at:

• 0.6650: 628 million

This is a moderate volume level for AUD/USD, which could influence trading if the spot price is near this level at expiration. Any substantial deviation from this price could prompt adjustments among traders who were relying on this level holding.

NZD/USD Expiry

In the New Zealand dollar (NZD/USD) market, we have:

• 0.5940: 606 million

With 606 million in expiry volume, this level for NZD/USD might attract attention as traders position around this strike. Given recent market fluctuations, this expiry could add pressure if the market is moving toward or away from this level.

USD/CAD Expiries

USD/CAD has some of the largest volume expiries among the pairs listed, with two major strikes:

• 1.4060: 1.37 billion
• 1.3740: 1.31 billion
• 1.3710: 500 million

These strikes suggest substantial market interest in USD/CAD near the 1.37–1.41 range. The high volumes at these levels may indicate a strong level of support or resistance, and traders should keep an eye on whether USD/CAD approaches these prices. The large expiries at 1.4060 and 1.3740 suggest that traders may look to either defend or capitalize on these levels.

USD/CHF Expiry

Lastly, the Swiss franc (USD/CHF) has a single notable expiry:

• 0.8520: 500 million

Although lower in volume than some other pairs, this 500-million expiry at 0.8520 could still impact USD/CHF trading around this level. If market sentiment around USD/CHF aligns with this level, we could see some volatility as contracts near expiry.

How FX Options Expiries Influence the Market

Options expiries impact currency pairs by adding liquidity around key strike prices. When large expiries are near the current price level, it can lead to “pinning” effects, where prices gravitate toward these levels due to the hedging activity of options traders. Additionally, when options with significant volumes expire out-of-the-money, there may be less immediate impact, as traders do not need to hedge around these levels as aggressively.

As Monday approaches, keeping an eye on these strike levels, particularly for EUR/USD and USD/CAD where volumes are higher, could provide valuable insights. Whether you’re trading directly around these options levels or simply looking to understand potential volatility, options expiries offer a window into market sentiment and trader positioning at the start of the week.