10 Oct 2017
EUR/USD Options: Bearish bias
The preliminary data published by the CME for EUR/USD November expiry options indicates increased demand for the bearish bets (Put options) ahead of Catalan President Carles Puigdemont's key address to the regional parliament.
| Put Summary | |||||
| Total | ITM | OTM | |||
| OI | Chg | OI | Chg | OI | Chg |
| 45,848 | 1,056 | 11,331 | 72 | 34,517 | 984 |
| Call Summary | |||||
| Total | ITM | OTM | |||
| OI | Chg | OI | Chg | OI | Chg |
| 42,522 | 360 | 3,848 | 34 | 38,674 | 326 |
- The open positions/open interest in Put options rose by 1056 contracts on Monday, while the open positions in Calls rose by 360 contracts.
- 1.20 Strike Call has the max buildup of open positions, while a significant build up is seen in 1.1550 Put, 1.1650 Put and 1.17 Put.
The open interest build up indicates scope for a decline to 1.1550 looks likely in the short-run. On the higher side, 1.20 could work as a strong resistance in the near future. The bearish bias is quite clear, but contradicts the daily chart, which says the pull back in the EUR/USD from 1.2092 has ended.