# Currency Option expirations Today: EUR/USD, USD/JPY Lead Volume
A critically important volume of currency options are set to expire today, February 2, impacting major forex pairs. The expirations, totaling billions of dollars, are expected to create volatility as traders adjust positions before the 18:00 Moscow time (15:00 GMT / 10:00 NY) deadline.
Key Expiration Levels & Volumes
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The largest concentration of expiring options is centered around the EUR/USD pair, with substantial activity at several key strike prices. According to data released today, expirations are positioned as follows:
- 1.1800 ($1.2 billion)
- 1.1825-30 ($506 million)
- 1.1850-55 ($1 billion)
- 1.1900 ($793 million)
- 1.1925 ($1.4 billion)
- 1.2000 ($4.7 billion)
The USD/JPY pair also shows considerable volume, with notable expirations at:
- 153.40 ($640 million)
- 154.75-80 ($370 million)
- 155.00 ($611 million)
- 155.70 ($590 million)
- 155.90-156.00 ($440 million)
Other Notable Pairings
Beyond the EUR/USD and USD/JPY, other currency pairs are experiencing significant option expirations. These include:
- USD/CAD: 1.3500 ($1.3 billion), 1.3690 ($280 million)
- GBP/USD: 1.3500 ($392 million), 1.3650 ($400 million), 1.3700 ($194 million)
- AUD/USD: 0.6900 ($474 million), 0.6925-30 ($764 million)
- EUR/CHF: 0.9200-10 ($300 million)
Implications for Forex Markets
These large option expirations are likely to influence market dynamics throughout the day. traders frequently enough engage in gamma hedging – adjusting their positions to remain neutral as the underlying asset price approaches the strike price – which can amplify price movements.The Moscow Bureau, which provided the data, identified the EUR/USD 1.2000 level as particularly sensitive, with $4.7 billion in expiring options. This suggests a potential for increased volatility if the pair approaches that level.
Why are these expirations happening? Currency options are contracts giving the buyer the right, but not the obligation, to buy or sell a currency at a specified exchange rate (the strike price) on or before a specific date (the expiration date). Traders use these to hedge risk or speculate on currency movements. Today’s expirations represent the culmination of positions taken in prior weeks. Who is impacted? Market participants, including banks, hedge funds, and individual traders, are all affected by the potential volatility. What is the expected outcome? Increased trading volume and price swings around the key strike prices. how dose it work? As options approach expiration, traders adjust their positions, often leading to increased buying or selling pressure.
