As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert – (FXA)
Buy the Currency Shares Australian Dollar Trust (FXA) October $87-$90 bull call spread at $2.70 or best
expiration date: 10-18-2013
Portfolio weighting: 10%
Number of Contracts = 39 contracts.
These (FXA) options are fairly illiquid, and trade at double the normal spread found in the foreign exchange options market, so execution here is crucial. Put in a limit order for the spread that works for you. If you don’t get done, just walk away and wait fore the next Trade Alert, of which there will be many.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous. Don’t execute the legs individually or you will end up losing much of your profit.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months further out.
Here are the specific trades you need to execute this position:
Buy 39 October, 2013 (FXA) $87 calls at……………..…$5.70
Sell short 39 October, 2013 (FXA) $90 calls at……….…$3.00
Potential Profit: $3.00 – $2.70 = $0.30
($.30 X 100 X 39) = $1,100 – 1.1% for the notional $100,000 model portfolio.