FXE Signal - November 26, 2012


By: Andrew Keene

Today’s trade is in the CurrencyShares Euro Trust (FXE). FXE is an exchange traded fund that mimics the price of the Euro. FXE is currently trading around $128.75 in a 52 week range of $119.74-$134.89. The fund has seen a decline of 1.37% YTD and 5.54% in the past 12 months. The Euro is trading at 3-week highs as traders become optimistic that European Union will come to a deal over Greece’s budget. This trade will profit on a bearish pullback from the gap higher on Friday’s shortened session.

My trade: Buy the FXE Dec 128-127-126 Put Fly for $0.13
My risk: $13 per one lot
My reward: $87 per one lot
My break even: $127.87 and $126.13

Andrew Keene spent 10 years as an independent equity options trader on the Chicago Board of Options Exchange, during which he spent the majority of his time as a market-maker for over 125 stocks. Andrew currently trades futures, currencies and commodities. When he's not trading, Andrew appears on top business television shows including CNBC's Squawk on the Street, Street Smart on Bloomberg TV and First Business, a show that is syndicated across the United States. Andrew graduated from the University of Illinois with a degree in Finance with a concentration in Accountancy.