US dollar soars: 5 trades on a surging greenback
London (Mar 11) Trades outside the equity market could prove more lucrative if a strengthening dollar brings volatility to stocks, CNBC "Fast Money" trader Pete Najarian said.
"People are definitely concerned as this dollar strengthens," Najarian said.
The euro hit a 12-year low against the dollar on Tuesday as the three major U.S. indexes each shed more than 1 percent. The dollar index—which measures the greenback against a basket of currencies—jumped more than 1 percent to close just below $99.
The index is "probably a buy" right now, Najarian said. Options in the CBOE Volatility Index—which measures expectations for market uncertainty—also look appealing if choppy trading continues, he added.
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It spiked more than 10 percent on Tuesday to sit below $17.
Some stocks should prove resistant to a strong dollar, trader Karen Finerman said. She bought calls in United Rentals, which fell more than 4 percent to $87 per share on Tuesday.
It holds upside as it conducts most of its business in the U.S., Finerman said.
"It's almost immune to [a strong dollar]," she said.
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Trader Steve Grasso looked at E-Trade Financial and Charles Schwab, which he called "interest-rate speculative plays." He believes the stocks will climb higher "in what should be a rate increase sooner or later."
E-Trade and Schwab both lost ground on Tuesday, closing around $27 and $30 per share, respectively.
Source: CNBC