Trade Alert - (FXY) June 17, 2015

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.

Sell the Currency Shares Japanese Yen Trust (FXY) July, 17, 2015 $81-$83 in-the-money vertical bear put spread at $1.97 or best

Closing Trade

6-17-2015

expiration date: July 17, 2015

Portfolio weighting: 10%

Number of Contracts = 56 contracts

I am going to use the gap move overnight in the Japanese yen to take profits in the Currency Shares Japanese Yen Trust (FXY) July, 17, 2015 $81-$83 in-the-money vertical bear put spread.

At the current market, we have captured 85% in the potential profit in a mere four days. This givers you a profit over four trading days of 9.4%.

Well done!

Not only that, we get to take this profit a 45 months ahead of the major risk event of the month, the Federal Reserve?s announcement of its decision in interest rates for the coming quarter.

If the market has taught you anything this year, it is to take the quick profits, and dodge the big risk events when you can.

Weaving and dodging, that?s what it?s all about.

You can execute this spread anywhere in the $1.95 range and get most of the gain.

Don?t get me wrong here. I still thing the yen will continue to fall, possibly taking the (FXY) below $75 by year end.

However, with a large number of contracts, commissions will be an issue for some of you. So you might want to run this one into expiration. Time to call your broker and get a cheaper commission rate.

The best execution for the options 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, and the liquidity in the options market isn?t that great these days.

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

Sell 56 July, 2015 (FXY) $83 puts at?????$4.90
Buy to cover short 56 July, 2015 (FXY) $81 puts at..?.$2.93
Net Cost:??????????????????.....$1.97

Profit at expiration: $1.97 - $1.80 = $0.17

(56 X 100 X $0.20 ) = $1,120 or 1.12% profit for the notional $100,000 portfolio.

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.