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Today we are considering applying a Bull Call Spread on South32 Ltd (S32)

Analysis:

S32 is currently trading at $2.89.

S32 has been trading in a short-term uptrend since its lows in October last year. It broke the downtrend line and with the recent higher peaks and troughs, we could be seeing a strong change in trend. S32 has given strong bullish entry signals today, so we are expecting S32 to continue higher to form another higher peak.

We can consider trading a Bull Call spread that not only profits from bullish movement, but if setup correctly, can also profit from time decay. This means we can see a slow drift up, or sidewards movement and still make maximum profit by expiry.


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.