Option Trading – Bull Call Spread

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This is a recent trade of Option Expert William Chien, if you are interested in speaking to William about his option trading strategies call 07 5504 2244.

(This publication is not providing advice, it is just published as an example.)

 

FXJ appears to be resting on its long term uptrend line at the $0.72 level before it moves higher again (see below daily FXJ chart).

 

Hence, I would recommend the following FXJ bull call spread trade to take advantage of a potential rise in the FXJ share price.

 

Buy 400 May FXJ $0.75 call & Sell 400 May FXJ $0.85 call for a net debit of about $0.02 per spread GTC; costing about $800 in premium (before brokerage)

 

  • Low risk: maximum potential loss = $800 plus brokerage
  • No ongoing margin requirement
  • High potential profit: if FXJ trades up to $0.85 as per my projection, then we will achieve a profit in excess of $2,000 (see below payoff diagram)

 

Although the recommended trade size is 400 spreads, client can elect to trade a different size to suit their risk tolerance.

Please ring the Dealing Desk and ask for William on 1300 73 66 22 if you are interested in his Option Trade.

 

Option Trading - Bull Call Spread

ANZ Call Spread

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This is a recent trade of Option Expert William Chien, if you are interested in speaking to William about his option trades you are welcome to call on 07 5504 2244

(This publication is not providing advice, it is just published as an example.)

 

ANZ will report its result on 2-May-2012 & will go ex-dividend (about $0.65 fully franked) on 10-May-2012.

 

Furthermore, ANZ appears to be resting on its long term uptrend line at the $22.60 level before it moves higher again (see below daily ANZ chart).

 

Hence, I would recommend the following ANZ calendar call spread trade to take advantage of a potential rise in the ANZ share price.

 

Buy 50 May ANZ $23.50 call & Sell 50 Apr ANZ $23.51 call for a net debit of about $0.12 per spread GTC; costing about $600 in premium (before brokerage)

Details.

  • Low risk: maximum potential loss = $600 plus brokerage
  • No ongoing margin requirement
  • High potential profit: if the Apr ANZ sold call expires worthless, then we will have an unlimited upside potential on the May ANZ bought call

 

Please ring the Dealing Desk and ask for William on 1300 73 66 22 if you are interested in his Option Trades.