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Look At This Trade For A Weakening Dollar, Say Carter Worth And Mike Khouw

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.

· 11/14/2020 13:49

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.