Trade Alert - (FXE) November 7, 2016
When a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what security to buy, 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.
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Trade Alert - (FXE)- BUY
Buy the Currency Shares Euro Trust (FXE) November, 2016 $110-$113 in-the-money vertical bear put spread at $2.67 or best
Opening Trade
11-7-2016
Expiration Date: November 18, 2016
Portfolio Weighting: 10%
Number of Contracts = 37 contracts
You can pay all the way up to $2.75 for this spread and it still makes sense.
If you can?t trade options then buy the ProShares Ultra Short Euro ETF (EUO), the 2X short Euro fund.
The Currency Shares Euro Trust (FXE) November, 2016 $110-$113 in-the-money vertical bear put spread is a bet that the Euro won?t rise above $110 by the November 18th expiration in 9 trading days.
Currencies always fall when dollar interest rates are rising.
In other words, the (FXE) would have to run up to a new two-month high within the next 9 trading days while US interest rates are rising for us to lose money on this trade. That is a bet that I am more than willing to make.
The election outcome is not uncertain for me.
After participating or covering elections for nearly 50 years, and harvesting the insights gained from attending those tedious White House dinners, I am confident of the outcome: Hillary Clinton should win in the Electoral College by a landslide.
Some mathematically, artificial intelligence driven models have her winning by as many as 123 electoral votes, while others give her a probability of winning of 82%.
So I?m putting my money where my mouth is.
A Clinton win means that the economic outlook improves, interest rates rise, pushing up the value of the US dollar against the Euro.
CAUTION: If you are certain Donald Trump is going to win the election, you absolutely DO NOT want to do this trade.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of OptionsHouse.
If you are uncertain about how to execute this options spread, please watch my training video ?How to Execute a Bear Put Spread?
Please keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.
Paid subscribers, be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual investors need every advantage they can get.
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 with only 9 days to expiration.
Here Are the Specific Trades You Need to Execute This Position:
Buy 37 Nov, 2016 (FXE) $113 puts at????.?.??$5.40
Sell short 37 Nov, 2016 (FXE) $110 puts at.????..$2.73
Net Cost:???????????????????......$2.67
Potential Profit: $3.00 - $2.67 = $0.33
(37 X 100 X $0.33) = $1,221 or 12.36% in ten trading days
