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.
Buy the Currency Shares Japanese Yen Trust (FXY) June, 19, 2015 $82-?$84 in?-the?-money vertical bear put spread at $1.55 or best
3?-19?-2015
Opening Trade
Portfolio weighting: 10%
Number of Contracts: 65
If for any reasons you can?t, are don?t want do the options, just buy the ProShares Ultra Short Yen ETF (YCS) outright. You?ll be taking on more risk, but over the longer term will make more money.
In depth research piece to follow.
The best execution for the options 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, and the liquidity in the options market isn?t that great these days. If you can?t get done at the $1.55 price, then keep raising you bid in 5 cent increments until you succeed.
Here are the specific trades you need to execute this position:
Buy 65 June, 2015 (FXY) $84 puts at...............$4.00
Sell short 65 June, 2015 (FXY) $82 puts at......$2.45
Net Cost:...........................................................$1.55
Profit at expiration: $2.00 ? $1.55 = $0.45
(65 X 100 X $0.45 ) = $2,925 or 2.93% profit for the notional $100,000 portfolio.
