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Today we are looking at applying a Bull Call Spread on Australia and New Zealand Banking GrpLtd (ANZ)

Analysis:

ANZ is currently trading at $24.08.

ANZ has been trading in an uptrend since its lows in September last year. Recently it tracked sideward in a tight channel as it consolidated. The past few days have seen ANZ push through the top of the channel and retesting it as support. This shows that the break is a positive sign for a move a higher.

We suggested a Bull Call spread to our clients today to take advantage of this expected move up. We chose a Bull Call spread because we also wanted to be able to profit and hedge against sideward movement.

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 which runs through advanced strategies.