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
Buy the Currency Shares Euro Trust (FXE) January, 2016 $108-$111 in-the-money vertical bear put spread at $2.55 or best
?RISK ON?
Opening Trade
12-7-2015
expiration date: January 15, 2016
Portfolio weighting: 10%
Number of Contracts = 39
You can pay all the way up to $2.70 for this spread and it still makes sense.
If you can?t do the options, then buy the ProShares Ultra Short Euro ETF (EUO) outright.
The net result of Thursday?s ECB meeting was that we are going to see more quantitative easing in Europe for longer. Ignore any headline that says otherwise. That is terrible news for the beleaguered continental currency.
Add to that the blockbuster US Friday nonfarm payroll report that confirms a full employment economy, and makes a Federal Reserve interest rate rise an absolute certainty at the December 16 meeting.
It looks like the Euro is hell bent to test parity once more before the end of the year. We got a nice little pop in the Euro that briefly opens the window for us to get in on the short side one more time.
It is a perfect strong dollar/weak Euro scenario. My upcoming European vacation is getting cheaper by the day!
Pedal to the metal!
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.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Vertical Bear Put Debit Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/ .
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 January, 2016 (FXE) $111 puts at?????$5.30
Sell short 39 January, 2016 (FXE) $108 puts at..?.$2.75
Net Cost:??????????????????.....$2.55
Profit at expiration: $3.00 - $2.55 = $0.45
(39 X 100 X $0.45 ) = $1,755 or 1.76% profit for the notional $100,000 portfolio.
