Dax starts virtually unchanged - Focus on options expiration
Friday marked the final major trading day of the stock market year, with the Dax opening almost unchanged. The index hovered just 0.1% above Thursday’s close, standing at around 24,210 points by 9:30 AM local time. Analysts anticipated a sharp drop in trading volumes and liquidity after today’s session.
Today also saw the largest options expiry of the year for the Dax, as key contracts reached their deadline.
The Dax began the day with little movement, reflecting cautious trading ahead of the expiry. By mid-morning, Siemens Energy, Deutsche Post, and Commerzbank led gains, while Symrise, Adidas, and SAP trailed at the bottom of the index.
A total of eight of the ten biggest options positions—and 18 of the top 25—were set to expire by the end of the day. Among these, four of the index’s largest outstanding contracts reached their deadline, raising questions about whether hedging positions would be rolled over. The 24,000-point level remained critical, with nearly 10,000 call options and close to 7,000 put options tied to this threshold.
Beyond equities, the euro weakened slightly against the dollar, trading at $1.1714. Oil prices also dipped, with North Sea Brent crude falling to $59.60 per barrel by 9:00 AM German time.
Market participants braced for reduced activity after today, as the expiry of these major contracts typically leads to lower liquidity in the final days of the year.
The expiry of these significant options contracts will likely reshape the Dax’s short-term support and resistance levels. With trading volumes expected to decline sharply, the market’s next moves may hinge on whether hedging positions are renewed. The 24,000-point mark remains a focal point for traders as the year draws to a close.
