EUR/USD options markets: further upside (still) expected

CME Group data for options markets in the 6EU7 contract expiring on August 4, saw OTM (‘out of the money’) Puts rising by 1,163 contracts, while OTM Calls increased by 1,847 contracts.

On the ITM (‘in the money’) side, Calls decreased by 208 contracts, while Puts rose by 737 contracts.

The Put/Call ratio ticked higher to 1.09.

EUR/USD momentum remains unabated

The increment in OTM Calls, mainly in the 1.2050 and 1.1850 strike prices, hints at the fact that further gains still remain in the pipeline for EUR/USD, while investors keep ‘protecting’ this view against an unexpected move by purchasing cheap insurance, as seen by the raise in OTM Puts (+1,163 contracts), specially in the 1.18 and 1.17 strike prices.