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)
Sell the Currency Shares Euro Trust (FXE) November, 2014 $128-$130 in-the-money bear put spread at $1.96 or best
Closing Trade
10-3-2014
Expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 60 contracts
You can sell this put spread anywhere within $1.90-$1.96 and have a guaranteed profit.
The Currency Shares Euro Trust (FXE) November, 2014 $128-$130 in-the-money bear put spread has moved so far into the money so fast that we now have 85% of the potential profit.
The Euro is in free fall, as is the Japanese yen (FXY). The US dollar reigns supreme.
However, they have become highly illiquid. Your screen will show a $1.75-$2.00 spread price. The real market, as evidenced by trading in the November $128 and $130 calls, is probably $1.91-$1.96. So just put a limit order in to sell at $1.96 and leave it there, even if it takes days or weeks to get done.
I want to raise some cash here, so on the next one or two cent rally in the Euro, I can jump back in on the short side in the (FXE) with closer strikes.
Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best.
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 60 November, 2014 (FXE) $130 puts at?????$6.75
Buy to cover short 60 November, 2014 (FXE) $128 puts at...$4.79
Net Proceeds:??????????????????.....$1.96
Profit: $1.96 - $1.73 = $0.27
(60 X 100 X $0.23) = $1,380 or 1.38% profit for the notional $100,000 portfolio.
