Options expiry and the 10am New York cut
Posted: Sat Oct 31, 2026 8:36 pm
Currency options expire at 10am New York time every day, and large strikes can attract price in the hours before. Traders refer to the effect as pinning, where price gravitates toward a big strike and stays close until the expiry passes.
The effect is strongest when there is a large amount of open interest at one level, often a round number. Banks hedging those positions buy and sell in ways that dampen movement near the strike.
For scalpers, that can mean frustrating chop around a round number in the morning, followed by a release of movement after 10am. The trade that failed six times at 1.0850 might suddenly work.
Public data on expiries is available from some sources, though the interpretation is rough. Even without it, noting the time and the nearest round number in the journal can reveal a pattern.
A common adjustment is staying out of tight range scalps near big levels until after the cut.
Does the 10am New York window behave differently from the rest of the morning on the charts you watch?
The effect is strongest when there is a large amount of open interest at one level, often a round number. Banks hedging those positions buy and sell in ways that dampen movement near the strike.
For scalpers, that can mean frustrating chop around a round number in the morning, followed by a release of movement after 10am. The trade that failed six times at 1.0850 might suddenly work.
Public data on expiries is available from some sources, though the interpretation is rough. Even without it, noting the time and the nearest round number in the journal can reveal a pattern.
A common adjustment is staying out of tight range scalps near big levels until after the cut.
Does the 10am New York window behave differently from the rest of the morning on the charts you watch?