Today we are applying a Woodside Petroleum Limited (WPL)
WPL is currently trading at $35.15
WPL has been trading in a channel since March. Recently it came down to the bottom of the channel and the key support level of ~$34. Today shows it breaking the short term downtrend line as it bounces off the bottom of the channel, indicating that it is likely to continue higher back towards the top of the channel.
Instead of simply buying the stock, we can instead leverage and use a Bull Call spread. If we set it up correctly, we can profit from not only bullish movement, but also sidewards movement as well. This is helpful in these situations as WPL does seem to track sidewards for periods of time before heading one direction or the other.
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.