On my previous post I singled out a few blocks that traded at 0.15 on the UUP November $23 strike. Today, 212,000 contracts closed at 0.30! The ETF itself spiked to an intra-day high of $23.15 before closing at $22.86 on record volume. A spike was warranted after UUP violated the 8 month downtrend and 50 day moving average on strong volume, which could confirm a reversal if it sticks. US Dollar Index technicals are worse than $UUP's. It is below the 50dma and 8 month downtrend. We will see who follows who going forward. Also, UUP implied volatility is trending higher at 17 vs. 10 historical vol at ISE.com. The monster call volume + trading halt/8-K filing (to issue 100 million more shares) really makes Dvol wonder who the 性交 was behind this trade, and the underlying nature. I'll be watching UUP, USDX and SPY going forward. Charts below are UUP and US Dollar Index.
Previous Posts:
$UUP Around $22 Support, Put/Call Open Interest Ratio and Short Interest (10/22)
$UUP Volume Spiked to 2008 High, Call Volume, ISEE Ratio Analysis, Potential Trade (10/27)
Q3 GDP 3.5%, SPY, UUP Bounced Off Support/Resistance, 50d (Charts, 10/29)
UUP: 237,858 November $23 Calls Trade Pre-FOMC Annoucement (US Dollar ETF)
Jim Iuorio: US Dollar Due For Big Spike, Trade Too Crowded (Fast Money)
UUP Halted, 8-K Filing - Powershares DB US Dollar Index Trust
Posts around the nets:
Deutsche Bank unit files for 100 mln new UUP shares (Reuters)
More Insider Trading (UUP Options) (MarketTicker)
Unusual Options - HLF, NDN, CCE, TLB, SONS, CAT, PENN, SNY, VIX, UUP (OptionInsider)
Options In Focus: “UUP, UUP and Away” (IBD/Optionetics)
A Suspicious Dollar Trade (PramaticCapitalist)
Dollar Index ETF call buying (Liftandhit)
UUP UUP and Away (DailyOptionsReport)
The UUP trade. Speculation meets supply & demand (HedgeAccording.ly)
UUP: PowerShares DB US Dollar Index Bullish Fund (Stockcharts.com)
US Dollar Index (Stockcharts.com)
