A record IMM long leaves EUR/USD vulnerable to a setback nL1N2FG0A1, so it's worth considering simple options to protect against that, or benefit from it.
A simple vanilla EUR put option will remain in play until its expiry but will offset losses from a predetermined level.
Of course, a premium has to be paid, so it may be more suited to those already in profit.
EUR/USD bears might also consider unhedged EUR put options instead of a cash short with stop, to increase leverage.
They would only risk an upfront premium and avoid being stopped if EUR/USD should rally before a deeper retracement.
Selecting a sell level (strike) further from the current spot rate, and a shorter-term expiry, will cheapen the options premium.
With EUR/USD at 1.1825, one-week 1.1800 EUR puts give the holder the right to sell EUR/USD at 1.1800 in a week for a premium of 40 pips -- profit if spot falls below 1.1785 (strike minus premium).
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