With the recent decline of the US Dollar Index , what is the right strategy to profit off of the sinking greenback?
For Wednesday's "Options Action," Mike Khouw of Cantor Fitzgerald explains how to use options to not only make a bearish bet on the dollar, but a bullish one too. Khouw suggests using the PowerShares DB US Dollar Index Bullish exchange-traded fund because it allows you to make that bet while limiting risk. He chose to illustrate how a bearish bet might work—see below.
**MIKE'S UUP TRADE**Buy the Jan. 20 put at .23 cents
Watch the video to learn more about this trade.
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