FX Option Levels
CME FX Options provide transparency and allow traders to analyze the structure of the Forex market. With the daily turnover of 10 billion, CME FX Options represent a small franction of the market but they can still be a valuable tool for intraday analysis. Forex options are also traded over OTC markets, however their turnover data are not publicly available.
CME FX Options have following types:
- Weekly Monday Options
- Weekly Wednesday Options
- Weekly Friday Options
- Monthly Options
Weekly Friday and Monthly options have the highest trading volume and represent the highest interest. All options expire at 10 a.m. New York on the expiration day.
FX Option Levels can help you find support and resistance levels and understand market price range expectations.
How to use FX Option Levels:
- Calls are options to buy at the strike price.
- Puts are options to sell at the strike price.
- Calls Balance is the weighted average of all Calls.
- Expect the price to stay below Calls Balance before expiration.
- Puts Balance is the weighted average of all Puts.
- Expect the price to stay above Puts Balance before expiration.
- The ratio between Puts and Calls indicates the market sentiment.
FX Option Levels are released in beta mode.