Trader Bets on Further Downside in the Euro (FXE)

Shares of the CURRENCYSHARES EURO ETF FXE are higher on the session by 0.82%, currently at $122.77, as the Euro puts in a much anticipated relief rally. Traders are taking the opportunity to get re-short the currency though and are buying puts along the way as well. The June $121 put was purchased on the offer 2,150 times at the opening bell today; open interest on the strike is only 1,290 contracts, which means new, bear positions were opened. From a technical basis the Euro is severely oversold and could bounce as high as $125 before resuming its slide. Buying puts instead on shorting the ETF limits your risk. The CURRENCYSHARES EURO ETF seeks to track the price of the Euro, net of trust expenses. The fund seeks to reflect the price of the Euro. The sponsor believes that, for many investors, the shares represent a cost-effective investment relative to traditional means of investing in the foreign exchange market.