Trade Alert - (FXY) May 18, 2012
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 - (FXY)
Expiration of the Currency Shares Japanese Yen Trust (FXY) May, 2012 $121 Puts at Zero
Closing Trade
5-18-2012
expiration date: May 18, 2012
Portfolio weighting: 20% = 60 Contracts
The return of the ?RISK ON? trade gave a solid boost to the Japanese yen. That pushed the ETF (FXY) up over $124, which allowed the May, 2012 $121 Puts to safely expire out of the money. The position should disappear from you account on Monday, and the margin freed up.
This brought in a net profit of (100 X 60 X $0.25) = $1,500, or 1.50% to the model $100,000 portfolio. That gain completely hedged out any loss through time decay on our long position in the September $121 puts, as well as the capital loss caused by the small appreciation of the yen. This short position therefore did its job. Thank you Mr. Yen, and on to the next trade.
I will run the P&L?s for our remaining expiring options today for (BA), (IWM), and the (FXE) on Monday so my tired but loyal staff can go home. ?
