EUR/USD Options: Bearish bias

Omkar Godbole FXStreet Contributor

The preliminary data published by the CME for EUR/USD November expiry options indicates increased demand for the bearish bets (Put options) ahead of Catalan President Carles Puigdemont's key address to the regional parliament.

Put Summary
Total		ITM		OTM
OI	Chg	OI	Chg	OI	Chg
45,848	1,056	11,331	72	34,517	984

Call Summary
Total		ITM		OTM
OI	Chg	OI	Chg	OI	Chg
42,522	360	3,848	34	38,674	326

The open positions/open interest in Put options rose by 1056 contracts on Monday, while the open positions in Calls rose by 360 contracts.
1.20 Strike Call has the max buildup of open positions, while a significant build up is seen in 1.1550 Put, 1.1650 Put and 1.17 Put.

The open interest build up indicates scope for a decline to 1.1550 looks likely in the short-run. On the higher side, 1.20 could work as a strong resistance in the near future. The bearish bias is quite clear, but contradicts the daily chart, which says the pull back in the EUR/USD from 1.2092 has ended.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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