Trade Alert - (FXY) October 23, 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 - (FXY)
Buy the Currency Shares Japanese Yen Trust (FXY) November, 2014 $92-$95 in-the-money vertical bear put spread at $2.75 or best
Opening Trade
10-23-2014
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 43 contracts
Since we now have a huge profit on our double short position in the Euro (FXE), I have room to increase my exposure in the foreign exchange asset class.
The Japanese yen (FXY) has so far lagged in its return to a ?RISK ON? direction. That is, until today.
So I am going to jump in here with a bet that the yen is going down by strapping on a Currency Shares Japanese Yen Trust (FXY) November, 2014 $92-$95 in-the-money vertical bear put spread.
You can buy this spread anywhere in a $2.60 - $2.80 range and have a reasonable expectation of s winning trade.
If you can?t to the options, a nice alternative is to buy the ProShares Ultra Short Yen ETF (YCS) outright.
An extended research piece on why you should despise the Japanese yen will follow shortly.
If you have any questions on how to execute this trade, go to my Vertical Bear Put Spread Training video at http://www.madhedgefundtrader.com/ltt-executetradealerts/ .
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.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.
Here are the specific trades you need to execute this position:
Buy 43 November, 2014 (FXY) $95 puts at?????$5.00
Sell short 43 November, 2014 (FXY) $92 puts at..??.$2.25
Net Cost:??????????????????.....$2.75
Profit at expiration: $3.00 - $2.75 = $0.25
(43 X 100 X $0.25 ) = $1,075 or 1.08% profit for the notional $100,000 portfolio.
