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)
Sell the Currency Shares Japanese Yen Trust (FXY) November, 2014 $92-$95 in-the-money vertical bear put spread at $2.95 or best
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 43 contracts
You can sell this position anywhere from a $2.90-$3.00 range and be guaranteed to make money.
For new subscribers for whom this was their first Trade Alert, congratulations. You are now a winning trader!
At this morning?s mark, we now have reaped 80% of the potential profit in this trade. As the risk/reward is no longer favorable, there is no point in continuing for another three weeks into expiration.
If you can?t to the options, and bought the ProShares Ultra Short Yen ETF (YCS) instead, sell it for the short term, but keep it for the long term. The yen is going lower. No one ever got fired for taking a profit.
If you have any questions on how to execute this trade, go to my Vertical Bear Put Spread Training video at https://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:
Sell 43 November, 2014 (FXY) $95 puts at?????$5.75
Buy to cover short 43 November, 2014 (FXY) $92 puts at..??.$2.80
Profit at expiration: $2.95 – $2.75 = $0.20
(43 X 100 X $0.20 ) = $860 or 0.86% profit for the notional $100,000 portfolio.