The U.S. dollar is under a lot of pressure, Carter Worth of Cornerstone Macro said on CNBC's "Options Action." He analyzed the chart of the dollar index and noticed a double top pattern along with a break of the uptrend. He sees that as a bearish signal and thinks the dollar will trade sharply lower.
Mike Khouw suggested a bearish options trade for Invesco DB US Dollar Index Bullish Fund (NYSE:UUP) as a way to trade a potential weakness in the dollar. He would buy the March $25 put for $0.45. The trade breaks even at $24.55, or around 2% of the current stock price.