Closed (Margin): FXY December 2 x 67/72 Zebra... for a .20 credit.
Comments: This is about as "it didn't work out" as it gets ... . Paid a 9.85 debit to get in; .20 debit to close; 9.65 ($965) loser.
Key stats
About Invesco CurrencyShares Japanese Yen Trust
Expense ratio
0.40%
Home page
Inception date
Feb 12, 2007
ISIN
US46138W1071
FXY is known for its exposure to the Japanese yen (both long and short). The fund offers a simple strategy it holds Japanese yen in a deposit account. Still, it is worth noting that: 1) there's no deposit insurance on its holdings, so it carries credit risk of its depository, JPMorgan, and 2) distributions and share sales are always taxed at ordinary-income rate (as opposed to capital gains), regardless of holding period. In addition, FXY doesn't deliver the overnight lending rate like its benchmark, but with interest rates in Japan near 0% (or even lower), that's not much of a drawback. In fact, a 0% yield is a boon for those looking to short shares in the fund.
Classification
What's in the fund
Exposure type
Cash
Bonds, Cash & Other100.00%
Cash100.00%
Trade Idea: FXY December 16th 2 x 67/December 16th 72 Call RatioWith the yen at multi-year lows, looking to take a bullish assumption directional shot with plenty of time to work out in the Yen proxy, FXY.
The basic setup is to buy 2 x the 75 delta strikes and sell the 50's, resulting in a ~100 net delta long setup with a hypothetically infinite maximum profit.
Yen ETF in bullish 3-step setup - BullishBoth top & bottom indicators (circled) near oversold area and moving up.
Pitchfork shows Yen in value area low zone.
Higher lows 3 times show stepUP pattern.
$spy $fxy Only chart you need to watchIt appears that massive bets have been put in place that the $fxy will drop from here back into the consolidation wedge. A huge risk to market is that this doesn't happen. if Fxy breaks out, spy is in big trouble.
FXY time for the yen to start shine again ? Looking for appreciation in the yen. Soon there could be a correction on the market. Nice technical setups. 200MA RSI oversold MACD showing lose of momentum. Good Luck
How to manage a small portfolioWhen trading in a small account, it is very important to be efficient with the capital used. That is why, even though is not the optimal trade we are forced to trade using defined risk strategies like Iron Condors.
This is the continuation of the portfolio started in our How to trade options ser
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