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 - (FXE)- TAKE PROFITS
SELL the Currency Shares Euro Trust (FXE) May, 2016 $113-$116 in-the-money vertical bear put spread at $2.97 or best
Closing Trade
5-12-2016
expiration date: May 20, 2016
Portfolio weighting: 10%
Number of Contracts = 38 contracts
We?ve got another big win here, picking up a nice 12.50% in just 5 trading days.
We have captured 91.66% of the maximum potential profit in the Currency Shares Euro Trust (FXE) May, 2016 $113-$116 in-the-money vertical bear put spread.
Time to take the money and run. This way we cut our currency risk in half and have dry powder with which to reenter the position at a later date.
If you have the ProShares Ultra Short Euro ETF (EUO), the 2X short Euro fund. Keep it. The Euro is going lower
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Bear Put Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must me logged into your account to view the video.
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.
Here are the specific trades you need to execute this position:
Sell 38 May, 2016 (FXE) $116 puts at????.?.??$4.95
Buy to cover the short 38 May, 2016 (FXE) $113 puts at.????..$1.98
Net Cost:???????????????????......$2.97
Potential Profit: $2.97 - $2.64 = $0.33
(38 X 100 X $0.33) = $1,254 or 12.5% in 5 trading days
