What does Eur/Usd options expiring at 1.2750 means?

Discussion in 'Options' started by philipjb, Nov 16, 2012.

  1. Can someone who trades options, please explain me, what does it means, when a new afloats in the market such as

    Options Expiring for Eur/Usd at 1.2750

    How does it affects the Spot Market ?
    What does it mean by the expiry ? Does it mean spot price need to go in that level, meet the expiry of option, and than the price will go upside or downside.

    Appreciate your detailed response. thanks.
  2. that means that the settling price for euro dollars is 1.275
    meaning 1.275 dollars equals 1 euro dollar.

    options, if you have the 1.25 strike it is in the money and the 1.30 strike is out of the money.
  3. mutluit


    Options have an expiration date (usually the 3rd friday of the month; like was the case today). The above statement just says at exactly the expiration time the price was the said value... ie. the "closing price" of the said options (or of the underlying "asset")...

    Take a look at this one:
  4. Newex


  5. Ok,
    But does it affects the Spot Price?
    When we get such news in the news feed.
    Does it like the Spot price will be than moved in the direction of the strike or away from it ?
  6. Now,
    I just got a message like this

    Offers - 1.2780
    Bids - 1.2700
    Vanilla option expiries - 1.2720

    So what does this mean.. and how it affects spot price..
    Will it go near 1.2720 ? or away from it.
  7. Options are a derivative

    Options track Spot

    The tail doesn't wag the dog
  8. Newex


    You are right option expiries are something different



    There is an explanation in a comment

    It might be that these options are American options so ptions @ this price can be exercised.

    You should rephrase your question so we can get the answer from a more experienced forum member .