--Eleni Himaras & Rob McGlinchey
A hedge fund swooped on USD800 million in two-month euro puts against the U.S. dollar on Wednesday, with strikes around USD1.10. The hefty play positioned for a major reverse in spot direction in the pair, despite most players positioning for a short-term appreciation in the euro against the greenback this week.
The trade stood out in a week in which two-day and overnight trading in euro call options against the U.S. dollar dominated the options market, pushing the euro to a two-month high against the greenback on the back of poor economic ....