OctaFX | OctaFX Forex Broker
Open trading account
Back

Why EUR/GBP could be a decent short-side bet today?

FXStreet (Bali) - Scanning through the CME FX option volumes for Thursday, one interesting development has emerges, with market participants aggressively buying Pound 'in the money' calls, while selling Euro 'in the money Puts, ahead of today's Oct contract expiration.

Options positioning reveals some clues

In the EUR/USD Oct contract, 492 'in the money' put contracts were bought, while -360 'in the money' call contracts were sold to close positions. In contrast, GBP/USD saw 256 'in the money' calls being bought, while only 5 'in the money' put contracts came through.

EUR/GBP to keep the loosing streak?

In other words, market participants, ahead of the Oct expiration contract, entered the market for directional bets short the EUR/USD and long GBP/USD, making the EUR/GBP cross as a consequence, an interesting short-side proposition should price action and one's own discretion to spot chart opportunities at value areas agree.

Watch for gamma scalping along the way

It is important to remember, that as price moves in the direction of those betting for 'in the money' options - short eurusd and long gbpusd -, some gamma scalping strategies may be in play during different stages in order to bring the position to delta neutral - neutralize risk -. At the same time, expect some positions to be unwound - potential price reversals - at 10am NY cut.

France Budget down to €-89.65B in August from previous €-79.8B

France Budget down to €-89.65B in August from previous €-79.8B
Read more Previous

Gold trims gains, treasury yields stay flat

Gold prices trimmed gains in early Europe, while treasury prices stay flat as oil driven risk-on continues to keep the markets happy while heading into the weekend.
Read more Next
Start livechat