UUP Call Volume Surges As Investors Bet On Major Rise In Dollar

Assuming some massive UUP March call position is not being rolled, today was the second biggest volume day in UUP March Calls ($23 strike) ever. We believe this is not a roll as the trade did not have the pre-negotiated look of a usual roll, which does not move the actual price of the option itself materially. The March $23 strikes have been trading in a wide range opening just north of $0.70 and last traded $0.79/0.80. This is a major bet on future dollar strength. And, by implication, a leveraged bet on major market downside.

h/t Bill