Trade Alert - #2 (FXE) October 29, 2014
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)
Sell the Currency Shares Euro Trust (FXE) November, 2014 $127-$129 in-the-money bear put spread at $1.95 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS, TAKING PROFITS ON EXISTING POSITION
10-29-2014
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 60 contracts
You can sell this put spread anywhere within $1.90-$2.00 and be guaranteed to make money on this trade.
If you own the ProShares Ultra Short Euro ETF (EUO) instead of the options, sell it for a big profit for the short term, but keep it for the long term. The Euro is going lower.
There was a complete collapse in the Euro in the wake of the announcement by the Federal Reserve this afternoon that it is definitely ending quantitative easing.
That means higher interest rates sooner for the Greenback, widening its yield advantage over the beleaguered continental currency. Bottom line: up for the buck and down for the Euro.
As a result, we now have 85% of the potential profit in hand for the Currency Shares Euro Trust (FXE) November, 2014 $127-$129 in-the-money bear put spread.
As ?take the money and run? is now the rule of the day, I am locking in profits here, freeing up dry powder to use on the next spike up or down.
Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best.
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. 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 60 November, 2014 (FXE) $129 puts at?????$4.40
Buy to cover short 60 November, 2014 (FXE) $127 puts at...$2.45
Net Cost:??????????????????.....$1.95
Profit: $1.95 - $1.68 = $0.27
(60 X 100 X $0.27) = $1,620 or 1.62% profit for the notional $100,000 portfolio.
