By: Andrew Keene
Today we have a trade in the CurrencyShares Euro Trust (FXE). FXE is an exchange traded fund that mimics the price of the Euro. FXE is currently trading around $127.15 in a 52 week range of $119.74-$134.89. FXE has seen a decline of 1.37% YTD and 5.54% in the past 12 months. This trade comes in the wake of Moody’s downgrading France from its AAA credit rating. This trade sets up for profitability in a flat to bearish Euro market.
Trade: Selling the FXE Jan 127-128 Call Spread for $0.50
Risk: $50 per 1 lot
Reward: $50 per 1 lot
Notes: This trade sets up for profitability in a flat to bearish Euro market. FXE could even rally as long as it does not go through the $127.50 breakeven.