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 - (FXA) - Expiration
Expiration of the Currency Shares Australian Dollar Trust (FXA) October $87-$90 bull call spread at $3.00
Closing Trade - not for new subscribers
10-18-2013
expiration date: 10-18-2013
Portfolio weighting: 10%
Number of Contracts = 39 contracts
My bet that even a modest recovery in the Chinese economy would feed into a sharply higher Australian dollar and stocks turned out to be dead on. It is perhaps fitting that today the government in Beijing announced that Q3 GDP jumped to 7.8%, the best performance in a year. Victory is sweet!
My only regret is that I was not more aggressive in loading up on the Aussie, going with strikes closer to the money, in larger size, and with longer maturities.
You want to get paid more than 1.17% in performance for correctly calling a move in the (FXA) from $90 to $96.82. But the world hated this currency when I strapped on this position, so it?s better than a poke in the eye with a sharp stick.
Here is the final P&L for this position:
Long 39 October, 2013 (FXA) $87 calls at?????..?$9.82
Short 39 October, 2013 (FXA) $90 calls at?????..?$6.82
Net Proceeds:????????????....?...??.......$3.00
Profit: $3.00 - $2.70 = $0.30
($.30 X 100 X 39) = $1,170 ? 1.17% for the notional $100,000 model portfolio.
