Today we are looking at applying a Bull Call Spread on Australia and New Zealand Banking GrpLtd (ANZ)
ANZ is currently trading at $28.63
ANZ has been trading in an uptrend since its lows in late September last year. Recently it retraced back to the uptrend line. Today has it bouncing off the uptrend line showing bullish entry signals.
The broader market looks strong, especially considering that U.S markets are pushing into fresh all-time highs.
You could trade this in a couple of different ways. You could simply purchase a Call Option, with plenty of leverage to profit with a quick snap back to the previous highs at $29.50. Alternately, you could have a more medium-term approach and apply a Bull Call Spread with the idea of holding the position whilst the trend plays out. If set up correctly, the Bull Call Spread would profit not only from bullish movement, but also sidewards movement. This provides the ability to hold the trade with the expectation of a break of the resistance and a continuation of the trend.
Regardless, both offer an approach to trading that is largely unique to Options. Each strategy suits a different type of trader.
If you would like to learn how and when to use this strategy, and other strategies like it, then please contact us here at TradersCircle on 03 8080 5788. Alternately, you can download a free eBook off our website which runs through advanced strategies.