The 10am New York option cut: what to know before expiry hits

[Shadow Trader]

Every day, a batch of FX options expires at 10am New York time. Most are boring. A few are big enough to matter.

Points worth keeping in mind:

- Expiries cluster at round strikes, like 1.1000 or 150.00, because dealers and clients like round numbers.
- Size matters more than strike. Billions in notional near the spot price can pin it, while small ones do nothing.
- Pinning tends to fade right after the cut. Price that sat quietly for hours can jump a few pips minutes later.
- The effect is strongest when spot is close to the strike. A strike 80 pips away barely registers.
- Barrier options add a second layer, because a touch of the barrier can trigger or kill a whole position.

Details on expiries circulate in market commentary every morning, and a quick look takes under a minute.

The usual failure is overreach. A big strike near price doesn't guarantee a pin, and treating it like a law gets people stopped out.

Which expiries have actually shown up in a chart, and which ones did nothing?