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)
Buy the Currency Shares Euro Trust (FXE) September, 2015 $112-$115 in-the-money vertical bear put spread at $2.55 or best
Opening Trade
8-17-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 39 contracts
You can pay up to $2.70 for this spread and it still makes sense. If you can?t do the options, then just buy the ProShares Ultra Short Euro ETF (EUO) outright.
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 39 September, 2015 (FXE) $115 puts at?????$6.10
Sell short 39 September, 2015 (FXE) $112 puts at..??.$3.55
Net Cost:????????????????.....$2.55
Potential Profit: $3.00 - $2.55 = $0.45
(39 X 100 X $0.45) = $1,755 or 1.76% profit for the notional $100,000 portfolio.
