Heavy Call Buying In The ProShares UltraShort Euro ETF (NYSE:EUO)

“The euro is heading lower, and some traders are playing the move by combining the power of options with a leveraged ETF. optionMONSTER’s Heat Seeker tracking system detected heavy call buying in the ProShares UltraShort Euro (NYSE:EUO) exchange-traded fund, which moves twice as much as the common currency, but in the opposite direction. Money flowed into the September 21 calls, which mostly traded for $1.10 to $1.20, and the August 21 calls for $0.77 to $0.85. The September contracts changed hands 4,299 times while the August calls saw volume of 2,182. Activity was more than twice open interest in both strikes,” David Russell Reports From Option Monster.

Russell goes on to say, “(NYSE:EUO) rose 2.12 percent to $21.68 in early afternoon trading and is up about 3 percent in the last three sessions amid weakness in the euro. The common currency is now heading lower after a blistering two-month rally from $1.19 to $1.33. The move, which followed the panic about fiscal difficulties in Greece and Portugal, brought the euro to a key chart level from March and April where some traders might expect resistance. Today’s option transactions are noteworthy because the investor is using the power of options to amplify a move in EUO, which itself is designed to leverage a drop in the euro. The activity pushed total options volume in the fund to 7 times greater than average. Calls outnumbered puts by 118 to 1.”

We have put together some more details on the ProShares UltraShort Euro ETF (NYSE:EUO) including a snapshot of the options activity discussed in the article.

ProShares UltraShort Euro ETF (NYSE:EUO) Visit Our (EUO) Category: HERE

The investment will seek to replicate, net of expenses, twice the inverse performance of the EUR/USD daily price change. The fund normally invests assets in financial instruments with economic characteristics inverse to the index. It may employ leveraged investment techniques in seeking its investment objective.

Chart forUltraShort Euro ProShares (EUO)

Call Options Expire at close Friday, August 20, 2010
Strike Symbol Last Chg Bid Ask Vol Open Int
15.00 EUO100821C00015000 7.60 0.00 6.20 6.80 30 91
16.00 EUO100821C00016000 7.60 0.00 5.20 5.80 2 26
17.50 EUO100821C00017500 3.60 0.00 3.70 4.30 3 561
19.00 EUO100821C00019000 2.05 0.00 2.20 2.50 20 236
20.00 EUO100821C00020000 1.35 Up 0.05 1.30 1.50 135 1,109
21.00 EUO100821C00021000 0.60 Up 0.15 0.50 0.65 2,390 903
22.50 EUO100821C00022500 0.10 0.00 0.05 0.10 159 3,944
24.00 EUO100821C00024000 0.05 0.00 N/A 0.05 20 3,853
25.00 EUO100821C00025000 0.05 0.00 N/A 0.05 10 2,413
26.00 EUO100821C00026000 0.10 0.00 N/A 0.05 20 1,542
27.00 EUO100821C00027000 0.03 0.00 N/A 0.05 1 1,298
28.00 EUO100821C00028000 0.05 0.00 N/A 0.10 3 695
29.00 EUO100821C00029000 0.10 0.00 N/A 0.10 21 306
30.00 EUO100821C00030000 0.10 0.00 N/A 0.05 8 912
31.00 EUO100821C00031000 0.07 0.00 N/A 0.10 40 276
32.00 EUO100821C00032000 0.50 0.00 N/A 0.10 0 5
33.00 EUO100821C00033000 0.05 0.00 N/A 0.10 10 60
Put Options Expire at close Friday, August 20, 2010
Strike Symbol Last Chg Bid Ask Vol Open Int
15.00 EUO100821P00015000 0.20 0.00 N/A 0.10 0 10
17.50 EUO100821P00017500 0.05 0.00 N/A 0.10 2 221
19.00 EUO100821P00019000 0.05 0.00 N/A 0.10 2 72
20.00 EUO100821P00020000 0.05 0.00 N/A 0.10 101 279
21.00 EUO100821P00021000 0.20 Down 0.10 0.15 0.25 40 504
22.50 EUO100821P00022500 1.30 0.00 0.90 1.30 4 897
24.00 EUO100821P00024000 2.40 Down 0.10 2.35 2.75 2 303
25.00 EUO100821P00025000 4.00 0.00 3.50 3.80 4 255
26.00 EUO100821P00026000 4.50 0.00 4.20 4.80 7 33
28.00 EUO100821P00028000 6.90 0.00 6.20 6.80 1 2
32.00 EUO100821P00032000 9.50 0.00 10.20 10.80 4 6
Call Options Expire at close Friday, September 17, 2010
Strike Symbol Last Chg Bid Ask Vol Open Int
20.00 EUO100918C00020000 1.60 Up 0.20 1.55 1.65 244 217
21.00 EUO100918C00021000 0.95 Up 0.15 0.90 1.00 14,179 584
22.00 EUO100918C00022000 0.55 Up 0.25 0.50 0.60 1,070 499
23.00 EUO100918C00023000 0.25 0.00 0.25 0.30 367 278
24.00 EUO100918C00024000 0.10 0.00 N/A 0.20 30 271
25.00 EUO100918C00025000 0.10 0.00 0.05 0.20 3 115
Put Options Expire at close Friday, September 17, 2010
Strike Symbol Last Chg Bid Ask Vol Open Int
21.00 EUO100918P00021000 0.60 0.00 0.55 0.65 355 81
22.00 EUO100918P00022000 1.00 Down 0.05 0.85 1.30 10 240
23.00 EUO100918P00023000 1.55 Down 0.45 1.60 2.00 2 10
24.00 EUO100918P00024000 3.10 0.00 2.45 2.85 5 8


 

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