Quiet in FX Options — But Gold Is Heating Up
Over the past 24 hours, major currency options saw little of interest.
In contrast, precious metals — especially Gold — are attracting serious attention.
Let’s break down the key developments:
🔹 Observation #1: A New Bullish (But Hedged) Portfolio Appears
(See risk profile on screenshot.)
A new SMART option portfolio has entered the market:
Bullish bias, but with a built-in hedge — which reduces its predictive value.
If price drops below $3,800, the portfolio starts generating profit for its owner (via the hedge).
Built on the February 2025 futures contract, under an option series expiring in December 2025.
📌 Yes, it sounds confusing — and it is.
Option series expire, but futures live on.
This creates what we call "expiry risk" — a topic for another deep-dive article.
🔹 Observation #2: Put Activity at 3900 (Dec Series)
There’s growing activity in puts at the 3900 strike — moderate bullish positioning or support.
The bullish structure is hedged — not a pure directional bet.
Bearish positioning remains active.
Price has not yet shown signs of moving toward the main long setup.
I’d recommend at least 2–7 days of observation before considering any reversal trades.
📌 And here's why:
It’s rare for price to move immediately toward the target of a large, long-dated portfolio.
More often, there’s a delay of several days — especially when expiry is still far out.
Watch the flow.
Trade only when the edge is clear.
May the data-driven approach be with you!
