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)
Buy the Currency Shares Japanese Yen Trust (FXY) January, 2014 $99-$102 in-the-money bear put spread at $2.70 or best
Opening Trade
11-25-2013
expiration date: January 17, 2014
Portfolio weighting: 10%
Number of Contracts = 37 contracts
Looks like the beg breakdown has begun. We have taken out the July lows for the (FXY), and are about to take out the March multiyear lows. Look out below.
I?m moving out to the January expiration so I can take in the time decay over the holidays. There?s no money left in the Decembers anyway.
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:
Buy 37 January, 2014 (FXY) $102 puts at?????$6.10
Sell short 37 January, 2014 (FXY) $99 puts at..??.$3.40
Net Cost:??????????????????.....$2.70
Profit at expiration: $3.00 - $2.70 = $0.30
(37 X 100 X $0.30 ) = $1,110 or 1.11% profit for the notional $100,000 portfolio.
