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.
Trade Alert - (FXY)
Sell the Currency Shares Japanese Yen Trust (FXY) January, 2014 $99-$102 in-the-money bear put spread at $2.95 or best
Closing Trade
12-16-2013
expiration date: January 17, 2014
Portfolio weighting: 10%
Number of Contract = 38 contracts
No money left in this baby. Take the money and run, and have cash to plow into another position. We caught a nearly straight-line move down in the (FXY). Give yourself a pay on the back and take the money and run. Use the cash to plow into another position.
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.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.
Here are the specific trades you need to execute this position:
Sell 38 January, 2014 (FXY) $102 puts at?????$7.20
Buy to cover short 38 January, 2014 (FXY) $99 puts at..??.$4.25
Net Proceeds:??????????????????.....$2.95
Profit: $2.95 - $2.70 = $0.25
(38 X 100 X $0.25 ) = $950 or 0.95% profit for the notional $100,000 portfolio.
