Trade Alert - (FXE) November 12, 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)
Buy the Currency Shares Euro Trust (FXE) December, 2015 $111-$114 in-the-money vertical bear put spread at $2.60 or best
Opening Trade
11-12-2015
expiration date: December 18, 2015
Portfolio weighting: 10%
Number of Contracts = 38 contracts
You can pay all the way up to $2.75 for this spread and it still makes sense.
If you can?t do the options, then buy the ProShares Ultra Short Euro ETF (EUO) outright.
It looks like the Euro is hell bent to test parity before the end of the year. We got a nice little pop in the Euro that briefly opens the window for us to get in on the short side.
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.
This will occur two weeks before the Fed raises rates in the US.
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: https://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:
Buy 38 December, 2015 (FXE) $114 puts at?????$8.40
Sell short 38 December, 2015 (FXE) $111 puts at..?.$5.80
Net Cost:??????????????????.....$2.60
Profit at expiration: $3.00 - $2.60 = $0.40
(38 X 100 X $0.40 ) = $1,560 or 1.56% profit for the notional $100,000 portfolio.
