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$40 million says the euro will keep cratering

As the euro plummets, options traders are trying to find a way to cash in.

In a massive trade just before Tuesday's close, one trader bought 200,000 January 102/94 put spreads on the Guggenheim euro currency ETF (FXE) for $1.96 per share. Since each options contract controls 100 shares, this is a $39 million bet that the euro goes much lower over the course of the year.

Maximum profits of $121 million come with the FXE at 94 by January 2016—which roughly corresponds to the euro trading at 0.94 to the dollar, well below the widely watched parity level.

The euro has been absolutely crushed in recent days, falling to 12-year lows in session after session as the European Central Bank begins its long-awaited quantitative easing program. On Wednesday morning, it fell to 1.0559.

Read MoreWhy EM currencies matter to every investor: FX pro

A cashier counts euro banknotes in Vilnius, Lithuania.
Ints Kalnins | Reuters
A cashier counts euro banknotes in Vilnius, Lithuania.

And though many foresee the currency falling even lower as the U.S. central bank looks to hike interest rates, it's unclear exactly what the motivation behind this massive trade was.

Dan Nathan of RiskReversal.com said Tuesday on CNBC's "Fast Money." that with the euro already down so much, the trade is "possibly some sort of hedge" rather than an outright bet.

And in fact, according to Dennis Davitt of Harvest Volatility Advisors, buying bearish put options on the euro could be a great way to hedge one's exposure to U.S. stocks.

"If you're really worried about the knock-on effects of the euro, I would go buy options on the euro. They are considerably less expensive" than options on the S&P, he told CNBC, making them "better puts to buy."

Read MorePrepare for euro-dollar parity

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