News

Extracting FX signals from option flows – BofA

What does option positioning tell us

Bank of America Global Research tracks how option investors have traded so far in 2021.

G4: near-term bullish EUR, bearish JPY and CHF

From
May to July, option investors have significantly more amount of
unexpired calls than puts in EURUSD, their conviction in near-term
strength for EUR (
Exhibit 16). In contrast, option investors are positioned for more USDJPY and USDCHF calls than puts this month,” BofA notes.

G10 “high-beta” pairs: bullish AUD and NZD, moderately bearish CAD

Near-term open interest remain constructive for AUD and NZD (Exhibit 17),
as shown by the amount of unexpired calls versus puts for AUD and NZD
against USD. On the other hand, unexpired contracts are moderately
bearish CAD,” BofA adds.

For bank trade ideas, check out eFX Plus.
Invest in yourself. See our forex education hub.

Articles You May Like

How to Read Forex Economic Calendar So You Can Ride On High Probability Trades
USDCAD trades to a new low and centers within the 100 and 200 hour moving averages
That push and pull feeling
no loss trading strategy
Forexlive Americas FX news wrap: USD moves higher but quasi-holiday trading limits moves

Leave a Reply

Your email address will not be published. Required fields are marked *