Today we are looking at applying a Bull Call on Santos Ltd STO.
STO is currently trading at $6.47.
STO has been trading in an uptrend since the lows in March last year. Recently, along with the price of oil, it pulled back to return to the trend line, and the key support level of $6.00. Today has it breaking the countertrend and pushing higher. This likely was triggered by a recent run in oil prices. The next target is around $6.76.
Considering the market is tracking sidewards at the moment, and STO has recently been in consolidation mode, it would make sense to implement a strategy like a Bull Call spread. The Bull Call, if set up correctly, will profit from both sideward movement, and a continued rally.
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.