EUR/USD: options markets biased for further gains

Activity in the 6EU7 contract with expiring date on August 4 showed OTM (‘out of the money’) Puts increasing by 1,486 contracts, mainly in the 1.1600 and 1.1700 strike prices and ITM (‘in the money’) Puts advancing by 88 contracts, all according to CME Group’s advanced data.

In addition, OTM Calls rose by 398 contracts mainly in the 1.1850 and 1.1800 strike prices vs. a drop of 42 contracts ITM Calls.

Furthermore, the Put/Call ratio is at 1.02.

EUR/USD still targets 1.1713

EUR/USD is receding some ground after reaching a fresh 2-year tops in the 1.1680/85 band, although the sentiment among investors keeps biased towards further gains. OTM Calls rose by nearly 400 contracts while the significant raise in OTM Puts could be seen as ‘insurance’ in case the correction lower accelerates.