The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( TheStreet) -- Strategic Mindset: The Top Gun Options team is overall bearish, but bullish in a particular vertical. Target: ProShares Ultrashort Euro ( EUO) trading at 18.50 (after-hours quote) Commit Criteria: Fundamentally, Europe is slowly grinding to a halt with politics being the friction creator. Many euro shorts have been squeezed out in the last sharp move up, and bigger bank desks are looking to take advantage of these levels for selling. Follow TheStreet on Twitter and become a fan on Facebook. The European Central Bank will be printing 24/7 to help monetize debt and stabilize the banks; this should de-value the euro even further. Technically the EUO has a strengthening RSI and the MACD has crossed the signal line to the upside on medium to longer term charts. Also, this ETF has minor support at 17.80 and major support at 16.40. We believe a bull call spread would be a trade here as support seems solid and fundamentals could push EUO to profit-target levels in any given overnight session due to the overwhelming uncertainty for the eurozone and its financial system. We also need to give this trade time (theta) to realize some profitability; we will go out to Jan. 12, 2012 for breathing room. Important safety tip: Do not forget this ETF is inversely related to the euro! Tactical Employment:
Sell 10 18.00 JAN 2012 calls to close Buy 10 20.00 JAN 2012 calls to close spread for a credit. After the exit of Berlusconi and his sexy dance parties, we're looking for a trade that can take advantage of this imbalance. Happy hunting and make sure you hedge!