Trade Alert – (FXY) May 4, 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 – (FXY)

Sell Short the Currency Shares Japanese Yen Trust (FXY) May, 2012 $121 Puts at $0.25 or best

Opening Trade


expiration date: May 17, 2012

Portfolio weighting: 20% = 60 Contracts

With the current “RISK OFF” move accelerating in all asset classes, the weakness of the Japanese yen has been put on temporary hold. So I am going to take in the additional premium income selling short the May $121 (FXY) puts against my long position in the September (FXY) puts on a 2:1 basis. If you want to be conservative, or your broker won’t let you sell short naked puts, then you can do this on a 1:1 basis. If the (FXY) stays above $121 on expiration day in two weeks, then the profit on this trade will be (100 X $0.25 X 50) = $1,250, or 1.25% for the notional $100,000 portfolio.

I realize that not all of you may be able to do this trade, so just watch and see how this unfolds. This is how real hedge fund traders maneuver in these kinds of markets.