Trade Alert - (FXE) April 9, 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.
Trade Alert - (FXE) ? TAKE PROFITS
SELL the Currency Shares Euro Trust (FXE) April, 2015 $109-$112 in-the-money bear put spread at $2.98 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
4-9-2015
expiration date: April 17, 2015
Portfolio weighting: 10%
Number of Contracts = 39 contracts
The long march towards parity with the buck resumes.
It turns out that the short covering rally in the euro was ending two weeks ago, and the the beleaguered continental currency is more like stuck in a narrowing trading range for the next few months.
The Currency Shares Euro Trust (FXE) April, 2015 $109-$112 in-the-money bear put spread is showing a middle market price on my screen of $3.00 right now, it?s maximum theoretical value, so it is time to go.
Happy followers earned a tidy 16.4% profit on this position in only two weeks, adding 1.64% to the return of your total $100,000 portfolio.
Don?t hold me to these prices. They are ballpark estimates, at best. The spread on deep in the money are wide, about 30 cents per option on my screen right now.
But if you place a limit order close to my price, you should get done. If not, then keep moving it down in penny increments until you get done.
The other choice it to keep the position, run it six more trading days into the April 17 expiration, and avoid paying the exit commission.
If you bought the ProShares Ultra Short Euro ETF (EUO) instead, take profits now if you are a short-term trader, but hold on if you are a long-term investor. It is just a matter of time before the buck breaks parity with the euro.
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 39 April, 2015 (FXE) $112 puts at?????$7.00
Buy to cover short 39 April, 2015 (FXE) $109 puts at..??.$4.02
Net Proceeds:????????????????.....$2.98
Profit: $2.98 - $2.56 = $0.42
(39 X 100 X $0.42) = $1,638 or 1.64% profit for the notional $100,000 portfolio.
