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)-STOP LOSS
SELL the Currency Shares Euro Trust (FXE) December, 2015 $108-$111 in-the-money vertical bear put spread at $2.24 or best
Closing Trade
12-9-2015
expiration date: December 18, 2015
Portfolio weighting: 10%
Number of Contracts = 37 contracts
My tolerance for losses in December is about zero. Or one cent in the case of the (FXE).
It?s all about oil. Any weakness in Texas tea is not seen as a universal signal to sell EVERYTHING AND FLATTEN ALL POSITIONS!
All moves are now being exacerbated by declining December liquidity and the need by many to be flat by the end of next week.
That includes my short in the Euro. I missed the first four cents of the move by staying so far in-the-money. But today, it caught up with me. I can?t afford the risk of running this position into the expiration in 7 trading days.
I?m sorry, but hoping is not an investment strategy.
If you have the (EUO) I would keep it. It has far less leverage, and we are likely to see a turnaround in the Euro early next year, if not next week.
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:
Sell 37 December, 2015 (FXE) $111 puts at?????$3.17
Buy to cover short 37 December, 2015 (FXE) $108 puts at..?.$0.93
Net Cost:??????????????????.....$2.24
Loss: $2.70 - $2.24 = -$0.46
(37 X 100 X -$0.46 ) = -$1,702 or -1.70% profit for the notional $100,000 portfolio.
