Option expiries and the 10am New York cut
Posted: Sat Oct 31, 2026 7:42 pm
Large currency options expire daily at 10am New York time. Banks that sold those options often hedge, and that creates activity near strike prices, especially if large amounts are involved.
The idea is that price gets pulled toward a strike with a large expiry, or pinned near it, as dealers manage their hedges. Some days it works, and some days nothing happens.
Information about expiries comes from dealer reports and some data services. The size and location of strikes are often shared on trader forums and social feeds.
For a scalper, the practical use is limited but real. A pair that refuses to leave a level before 10am New York may be pinned by an expiry. After the cut, price often moves more freely.
Treating it as a hint rather than a rule helps. Trading against a pin without a clear reason can mean sitting through a long, dull range.
Knowing the size of the biggest expiries on a given morning also helps with expectations. A day with several large strikes close to spot often shows a pinned, choppy market until the cut, which is a poor environment for breakout scalps and a better one for tight fades.
Does anyone follow option expiries, and does it help?
The idea is that price gets pulled toward a strike with a large expiry, or pinned near it, as dealers manage their hedges. Some days it works, and some days nothing happens.
Information about expiries comes from dealer reports and some data services. The size and location of strikes are often shared on trader forums and social feeds.
For a scalper, the practical use is limited but real. A pair that refuses to leave a level before 10am New York may be pinned by an expiry. After the cut, price often moves more freely.
Treating it as a hint rather than a rule helps. Trading against a pin without a clear reason can mean sitting through a long, dull range.
Knowing the size of the biggest expiries on a given morning also helps with expectations. A day with several large strikes close to spot often shows a pinned, choppy market until the cut, which is a poor environment for breakout scalps and a better one for tight fades.
Does anyone follow option expiries, and does it help?