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) January, 2014 $97-$100 in-the-money bear put spread at $2.95 or best
12-27-2013
Closing Trade
expiration date: January 17, 2014
Portfolio weighting: 10%
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.
If you own the leveraged short yen ETF (YCS) outright, I would keep it. My medium term target for this baby is Y110, and the long term one is Y150. We could be in for some mileage here. You will only be missing the falling volatility and the time decay that the options offer.
Here are the specific trades you need to execute this position:
Sell 37 January, 2014 (FXY) $100 puts at?????$7.00
Buy to cover short 37 January, 2014 (FXY) $97 puts at.?.$4.05
Net Proceeds:??????????????????.....$2.95
Profit: $2.95 - $2.70 = $0.25
(37 X 100 X $0.25 ) = $925 or 0.93% profit for the notional $100,000 portfolio.
Another Blow For the Yen