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 - (FXY)
Sell the Currency Shares Japanese Yen Trust (FXY) March, 2013 $110-$115 in-the-money bear put spread at $5.00
Closing Trade-not for new subscribers
expiration date: March 15, 2013
Portfolio weighting for this spread: 10% = 22 contracts
Sell 22 March 2013 (FXY) $115 puts at…………………$12.65
Buy to cover short 22 March 2013 (FXY) $110 puts a….$7.65
After the massive move down in the Japanese yen last night, our Currency Shares Japanese Yen Trust (FXY) March, 2013 $110-$115 in-the-money bear put spread is finally trading at its maximum potential value of $5.00. That spares us from hanging on to the position for the final week into expiration, and frees up capital for better things to do. I managed to catch one of the largest one-day moves in the yen in many years to get here. But here we are.
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 farther out.
Profit: $5.00 - $4.20 = $0.80
(22 X 100 X $0.80) = $1,760 or 1.76% profit for the notional $100,000 portfolio.