Street One Financial analysts said they have seen higher activity in options based on PowerShares U.S. Dollar Index Bullish (NYSEArca: UUP).
The ETF profits when the dollar strengthens against major rivals.
“The ETF has been trading in a narrow range for the past three sessions, marginally strengthening against other currencies such as the euro and the trend has typically involved out of the money call buyers as well as buyers of call spreads,” Street One said in a note this week. “From a sentiment standpoint, it seems that options investors are favoring a gradual strengthening of the U.S. dollar against other currencies including the Euro. By design, UUP follows a rules based methodology which tracks the performance of the U.S. dollar via long futures, versus the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.”
PowerShares U.S. Dollar Index Bullish
For more information on the greenback, visit our U.S. dollar category.
Max Chen contributed to this article.