Trade Alert – (FXE) May 21, 2012

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.

Trade Alert - (FXE)

Expiration of the Currency Shares Euro Trust (FXE) May, 2012 $127 Puts at zero

Closing Trade


expiration date: May 18, 2012

Portfolio weighting: 20% = 50 Contracts

This was certainly the most exciting of our expiring options this week. The intensifying crisis in Europe caused the Euro (FXE) to spend most of the week trading well below our $127 strike price. Then, 15 minutes before the Friday close, a rumor hit the market that substantial progress would be made on the Greek debt debacle this weekend. The (FXE) immediately rallied $0.60, taking us just above our strike. By the time the final bell rang, the (FXE) closed at $127.09, rendering our short May, $127 puts worthless.

The profit on this trade came to (100 X 50 X $0.19) = $950, or 0.95% on you notional $100,000 model portfolio. The position should disappear from your account statement on Monday and the margin freed up. We now have a clear shot at the downside on any Euro weakness which will surely come.