EUR/USD options markets: still bullish, with caution

According to CME Group’s preliminary data for the 6EU7 contract expiring on August 4, OTM (‘out of the money’) Calls rose by 3,213 contracts, mainly in the 1.1900 strike price. OTM Puts increased by 2,618 contracts, mostly in the 1.1650 and 1.1700 strike prices.

Additionally, ITM (‘in the money’) Puts rose by 8 contracts, while ITM Calls dropped by 327 contracts.

The Put/Call ratio ticked a tad lower to 1.08.

EUR/USD rally stays firm

In light of the recent activity in EUR futures markets, the status quo around EUR/USD appears unchanged for the time being. However, the increase in OTM Puts implies that investors not only remain wary, but they also expect some near term correction. The raise in OTM Calls is also a signal that traders are buying cheap insurance against an unexpected move higher.