EUR/USD options markets: up, up, up you go

CME Group’s flash data for the 6EU7 contract expiring on August 4 showed OTM (‘out of the money’) Calls rising by1,373 contracts on Thursday, basically in the 1.1850 strike price (+829 contracts), while OTM Puts increased by 586 contracts, mainly in the 1.1450 and 1.1550 strike prices.

In addition, ITM (‘in the money’) Calls rose by 456 contracts, while ITM Puts increased by 98 contracts.

Next target 1.1713

The rally in spot keeps gathering steam, rapidly surpassing the critical 1.1616 barrier on Thursday, while it now seems to turning its attention to 1.1713. The continuation of the sharp ascent in the pair is reinforced so far by the increase in both ITM and OTM Calls, while the up tick in OTM Puts could be seen as traders buying insurance on an unexpected reversion.