Trade Alert – (FXY) June 11, 2013

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)

Buy the Currency Shares Japanese Yen Trust (FXY) July, 2013 $105-$108 in-the-money bear put spread at $2.45 or best

6-11-2013

Opening Trade

expiration date: July 19, 2013

Portfolio weighting: 10%

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.

Here are the specific trades you need to execute this position:

Buy 41 July, 2013 (FXY) $108 puts at……………$7.10
Sell short 41 July, 2013 (FXY) $105 puts at..…….$4.65
Net Cost:……………………………………………..$2.45

Profit at expiration: $3.00 – $2.45 = $0.55

(41 X 100 X $0.55) = $2,255 or 2.26% profit for the notional $100,000 portfolio.

6.11.2013 FXY A

6.11.2013 FXY B