Trade Alert: FXY, UUP

Sell to close the CurrencyShares Japanese Yen Trust (NYSE: FXY) July 21, 2017 $90 call option.

Buy to open the PowerShares DB U.S. Dollar Index Bullish Fund (NYSE: UUP) December 15, 2017 $25 call option. We suggest paying no more than 60 cents per contract.

We recommended selling to close the FXY July $90 call option. This was not an indicator-based trade. Rather it was a short-term hedge against our open put option against the VanEck Gold Miners ETF (NYSE: GDX) December 17, 2017 $23 put option. The hedge is no longer needed.

Our dollar indicator has become bullish enough to initiate a long position on the dollar. We recommend buying to open the UUP December $25 call option with a suggested limit price of 60 cents. Unlike the FXY trade, this is an indicator-based recommendation.

This trade is rated high risk as it could expire worthless if our expectations are not met.

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