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) ? TAKE PROFITS
SELL the Currency Shares Euro Trust (FXE) June, 2015 $113-$116 in-the-money vertical bear put spread at $2.88 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
6-5-2015
expiration date: June 19, 2015
Portfolio weighting: 10%
Number of Contracts = 39 contracts
I am going to take advantage of the amazing $2.50 gap down in the (FXE) this morning triggered by the blockbuster 280,000 print for the April nonfarm payroll to take profit.
With the extreme volatility we are witnessing these days, you would be nuts to leave money on the table.
Coming out at this level, you get to keep 71% of the maximum potential profit in the Currency Shares Euro Trust (FXE) June, 2015 $113-$116 in-the-money vertical bear put spread. That works out to a 13% return on your investment in one month.
Not bad.
Sure, with US interest rates rocketing at the long end, the fundamentals favor running this position into the June 19 expiration in ten trading days and keeping the entire $1,755 profit.
But who the hell is looking at fundamentals now? Am I the only one?
You have to trade this market with both hands.
Don?t hold me to these prices. They are ballpark estimates, at best. The spread on deep in the money are wide.
But if you place a limit order close to my price, you should get done. If not, then keep moving it up in penny increments until you get done.
It is just a matter of time before the buck breaks parity with the euro. Eventually, the (FXE) will reach the apex of a triangle in its price movement, and then break down once again. But I think that time is later, not sooner.
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:
Sell 39 June, 2015 (FXE) $116 puts at?????$7.10
Buy to cover the short 39 June, 2015 (FXE) $113 puts at..?$4.22
Net Cost:????????????????.....$2.88
Potential Profit: $2.88 - $2.55 = $0.33
(39 X 100 X $0.33) = $1,287 or 1.76% profit for the notional $100,000 portfolio.
