EUR/USD: options markets pushes for correction

According to CME Group’s preliminary figures for Wednesday, activity in the 6EU7 contract expiring on August 4 showed OTM (‘out of the money) Puts increasing by 704 contracts vs. an increment of 1,026 contracts in OTM Calls.

OTM Calls increased mainly in the 1.1850 (+130 contracts) and 1.1600 (+115 contracts) strike prices. The main activity in OTM Puts, in the meantime, was focused on 1.1550 strike price (+237 contracts) seconded by 1.1250, 1.1300 and 1.1350.

Further data saw ITM (‘in the money’) Calls up by 134 contracts and ITM Puts rising by 268 contracts. The Put/Call ratio ticked a tad lower to 0.98.

Squeeze lower on the cards

EUR/USD stays on the defensive since recent tops near 1.1490, losing ground for the second session in a row. The recent performance of the 6EU7 contract prompt traders to infer that a potential correction lower is in the offing, as protection for an unexpected bull run has been building up in past sessions.