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 - (FXY)
Sell the Currency Shares Japanese Yen Trust (FXY) January, 2014 $95-$98 in-the-money bear put spread at $3.00 or best
Closing Trade
1/15/2014
expiration date: January 17, 2014
Portfolio weighting: 10%
Number of Contracts =38 contracts
They are marking the middle market for the Currency Shares Japanese Yen Trust (FXY) January, 2014 $95-$98 in-the-money bear put spread at $3.00 right now, so I am going to come out. If you have to give up 5 cents to get this done at $2.95 then go ahead. Otherwise, you can wait two more days and keep the entire $3.00. It is highly unlikely that the (FXY) trades over? $95 before then.
I?ll be back in on the short side again on the next yen rally. The fundamentals haven?t changed an iota. I have been consistently negative on the yen for the past two years. For readers to refamiliarize themselves with the fundamental case against the Land of the Rising Sun and the trigger for the latest collapse, please click here for ?Selling the Yen, Again?,??Doubling Up On My Yen Shorts?, and ?The Party is Just Getting Started With the Japanese Yen?.
This is going to be one of those ?rich uncle? trades again for 2014, one that just keeps on giving. I think we made money on the short side 11 out of 12 months last year, and 2014 shouldn?t be any different.
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.
If you can?t do the options then buy the leveraged short yen ETF (YCS) outright. We could be in for some mileage here.
Here are the specific trades you need to execute this position:
Sell 38 January, 2014 (FXY) $98 puts at???????$4.50
Buy to cover short 38 January, 2014 (FXY) $95 puts at...$1.50
Net Proceeds:????????????????.......$3.00
Profit: $3.00 - $2.60 = $0.40
(38 X 100 X $0.40 ) = $1,520 or 1.52% profit for the notional $100,000 portfolio.
