Today we are applying a Bear Put on ASX LTD (ASX).
ASX is currently trading at $78.75.
The ASX reversed trend back in August. Since then, it has created a downtrend. Today shows it breaking key support, falling with the rest of the market. If the ASX can clear the 200 day MA it will continue to look bearish to at least $76.50. Ultimately, the ASX fundamentally is overbought, so this is a nice meet up with technical and fundamentals.
We could look to trade a Bear Put spread which will help us take advantage of not only bearish movement, but also sidewards movement. ASX’s downtrend is somewhat shallow, so something where we can profit from sidewards movement makes sense.