Easiest method to short the Euro?

[redatmosphere]

Are there options on currency?

 

[tomahawk]

EUO might be "easiest", but yes there are options on EUR/USD futures.

 

[Kedwards]

6E futures options. or otc, try alpari fx options. I think symbol FXE trades options also.

 

[redatmosphere]

Wouldn't the expense fees and re-calibration on EUO eat you alive long-term?

 

[tomahawk]

Quote from redatmosphere:

Wouldn't the expense fees and re-calibration on EUO eat you alive long-term?

Pros and cons to anything I guess. You'd have similar long term costs rolling futures or options too.

 

[Tsing Tao]

So here's a question. I'm long EUO from around $16.75. What happens if the EZ breaks up (hypothetical, of course) and the Euro ceases to be a currency? What happens to EUO?

 

[FrankSlaughtery]

Quote from Tsing Tao:

So here's a question. I'm long EUO from around $16.75. What happens if the EZ breaks up (hypothetical, of course) and the Euro ceases to be a currency? What happens to EUO?

have a party b/c you'll make a fortune. i strongly suggest NOT holding leveraged etf's for more than 1 day due to the math involved (it has been covered a million times elsewhere). just buy fxe puts.

 

[Tsing Tao]

Quote from FrankSlaughtery:

have a party b/c you'll make a fortune. i strongly suggest NOT holding leveraged etf's for more than 1 day due to the math involved (it has been covered a million times elsewhere). just buy fxe puts.

I get the decay aspect. I'm just genuinely curious what happens to EUO if the euro fails?

 

[Whistlingleaf]

The Euro will tank if it fails and you'll make money if long EUO or long FXE Puts.

 

[Martinghoul]

Quote from Tsing Tao:
I get the decay aspect. I'm just genuinely curious what happens to EUO if the euro fails?

Nobody knows and anything is possible. Will depend on what exactly happens. Maybe the ETF prospectus covers that eventuality, but suppose the new Euro is the old Euro - the PIIGS?