Traders Are Betting On Continued Strength In The U.S. Dollar ETF

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today focuses on some interesting options activity in the largest U.S. dollar ETF, as well as a popular Japanese equity fund.

As we mentioned in a recent piece, the strong run in the U.S. Dollar has attracted upside call interest in the largest U.S. Dollar tied ETP, UUP (PowerShares U.S. Dollar Index Bullish) lately. We have seen the June 27 calls trade in decent size most recently on a bit of a pullback in the U.S. Dollar relative to global currencies in the past couple sessions.

For reference sake, UUP was trading below $25 in October of last year, and was just above $25 immediately preceding Trump’s Presidential election before a stunning run that brings it to present levels.

In other activity, February 52 calls traded earlier this week in DXJ (WisdomTree Japan Hedged Equity), as that ETF has outperformed amid a Japanese equities rally. DXJ has seen decent inflows in the trailing one month period of more than $205 million in.

PowerShares DB US Dollar Index Bullish (NYSE:UUP) closed at $26.22 per share on Thursday, down $0.28 (-1.06%). Year-to-date, UUP has declined -0.91%, versus a 1.28% rise in the benchmark S&P 500 index during the same period.

UUP currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 25 ETFs in the Currency ETFs category.

Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch
paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.

Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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