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) December, 2013 $101-$104 in-the-money bear put spread at $2.95 or best
Closing Trade
11-21-2013
expiration date: December 20, 2013
Portfolio weighting: 10%
Number of Contracts = 38 contracts
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 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 December, 2013 (FXY) $104 puts at?????$7.30
Buy to cover short 38 December, 2013 (FXY) $101 puts at...$4.35
Net Cost:??????????????????.....$2.95
Profit at expiration: $2.95 - $2.70 = $0.25
(38 X 100 X $0.25) = $950 or 0.95% profit for the notional $100,000 portfolio.
