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 - (FXE)
Buy the Currency Shares Euro Trust (FXE) February, 2015 $122-$124 in-the-money bear put spread at $1.65 or best
Opening Trace
12-31-2014
expiration date: February 20, 2015
Portfolio weighting: 10%
Number of Contracts = 61 contract
Now that the Euro has decisively broken the $1.20 level in the cash market, I think we have a free pass to sell it short once again. The two-month consolidation just above this key psychological level inspired the oil price collapse is over.
The long March towards parity with the buck resumes.
After all, a lower oil price means lesser demand for the greenback, about $1.5 trillion a year worth.
You can buy this put spread anywhere within $1.60-$1.75 and have a reasonable expectation of making money on this trade.
Keep in mind that the options market is highly illiquid now, so don't hold me to these prices. They are ballpark estimates, at best.
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 on expiration months farther out.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don't chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 61 February, 2015 (FXE) $124 puts at...............$5.10
Sell short 61 February, 2015 (FXE) $122 puts at.........$3.45
Net Cost:.........................
Potential Profit: $2.00 - $1.65 = $0.35
(61 X 100 X $0.35) = $2,135 or 2.14% profit for the notional $100,000 portfolio.
