Yen losses draw more bearish bets

Japan's yen has been crumbling, and traders are jumping on the bandwagon.

optionMONSTER's trade scanners detected a surge of call volume in the ProShares UltraShort Yen Fund, which moves twice as much as the currency against the U.S. dollar, but in the opposite direction. Buyers snapped up more than 2,500 December 46 calls for $0.75 and $0.80, versus previous open interest of 167 contracts.

YCS is trading at $45.93, up 1.8 percent this morning and almost 8 percent in the last month. It's gained as continued economic weakness and political uncertainty in Japan hammer the yen.

The market is now looking for Tokyo to embark on a new wave of government spending. Before the selling began, the yen stood near long-term peaks because investors liked the currency as a safety play.

Total option volume in YCS is 13 times greater than average so far today, with calls outnumbering puts by almost 700 to 1.

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