When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (FXE)- BUY
BUY the Currency Shares Euro Trust (FXE) December, 2017 $111-$113 in-the-money vertical bull call spread at $1.74 or best
Opening Trade
11-29-2016
expiration date: December 15, 2017
Portfolio weighting: 10%
Number of Contracts = 57 contracts
We have just seen a nice 1 1/2 point pullback in the Euro (FXE), so I am going to use this opportunity to straddle up my existing position in the Currency Shares Euro Trust (FXE) December, 2017 $111-$113 in-the-money vertical bull call spread.
This will enable me to take in extra premium income by selling short both calls AND puts going into a normally slow time of the year.
As amazing as it may seem, Europe is now growing faster than the 3% recently seen in the US economy, potentially bringing forward the end of its own quantitative easing program of monetary expansion.
This is Euro positive.
I am therefore buying the Currency Shares Euro Trust (FXE) December, 2017 $111-$113 in-the-money vertical bull call spread at $1.74 or best.
Don't pay more than $1.85 for this position or you'll be chasing.
Keep in mind that liquidity in the Euro market is usually poor after the Continent shuts down for the day, so get done what you can, but only at your prices.
If you can't get this done at a good price, then walk away and wait for the next Trade Alert.
This is a bet that the (FXE) will trade at or above $113 by the December 15expiration date, compared to the current $114.11 in 13 trading days.
If you can't trade options, then stand aside. This is a pure options expiration play only.
Here are the specific trades you need to execute this position:
Buy 57 December, 2017 (FXE) $111 calls at..................................$3.70
Sell short 57 December, 2017 (FXE) $113 calls at..............................$1.96
Net Cost:..........................................................................................
Potential Profit: $2.00 - $1.74 = $0.26
(57 X 100 X $0.26) = $1,482 or 14.94% in 13 trading days
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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 close to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
