Trade Alert - (FXE) November 23, 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.
Trade Alert - (FXE)-TAKE PROFITS
SELL the Currency Shares Euro Trust (FXE) December, 2015 $111-$114 in-the-money vertical bear put spread at $2.95 or best
Closing Trade
11-23-2015
expiration date: December 18, 2015
Portfolio weighting: 10%
Number of Contracts = 38 contracts
At this morning?s opening prices, we have captured 85% of the maximum potential profit of the Currency Shares Euro Trust (FXE) December, 2015 $111-$114 in-the-money vertical bear put spread.
The risk/reward of carrying this position another month into the December 18 expiration is not longer favorable.
I would rather have dry powder going into the next short covering rally so I can resell the Euro higher up.
Going into the December Fed rate rise, parity for the beleaguered continental currency is looking like a sure thing.
Time to give yourself another pat on the back and move on to the next trade. You are making money while most other traders this year are having their heads handed to them.
If instead of the options you bought the ProShares Ultra Short Euro ETF (EUO) outright, take profits for the short term, but hold for the long term.
I am going to keep my other short position in the Euro, the (FXE) December $108-$111 vertical bear put spread. I still want to participate in case the melt down in the Euro continues.
ECB president Mario Draghi is doing everything he can to help, promising to chop the knees out from under the beleaguered continental currency with interest rate cut on December 3.
Over the weekend, a Fed governor further reiterated the central bank?s intention to raise rates in December.
It is a perfect strong dollar/weak Euro scenario. My upcoming European vacation is getting cheaper by the day!
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.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Vertical Bear Put Debit Spread? by clicking here at http://www.madhedgefundtrader.com/ltt-executetradealerts/ .
Don?t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Sell 38 December, 2015 (FXE) $114 puts at?????$9.80
Buy to cover short 38 December, 2015 (FXE) $111 puts at..?.$6.85
Net Proceeds:????????????????.....$2.95
Profit: $2.95 - $2.60 = $0.35
(38 X 100 X $0.35 ) = $1,330 or 1.33% profit for the notional $100,000 portfolio.
