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Trade Of The Week: ALU – Iron Condor

December 11, 2019

December 11, 2019

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Trade Of The Week: ALU – Iron Condor

Our trade of the week is a neutral ALU Iron Condor Trade.

Our trade of the week is a neutral ALU Iron Condor Trade.

Here are some of the key facts that have contributed to this trade idea:

  • We are looking to enter the position close to 45 days to expiry.
  • ADX is below 20
  • The 50 Day MA and 200 Day MA are close and favourable.
  • The share price is close to the 50 Day MA and 200 Day MA.

Based on the open this morning we are looking at trading the following strikes:

The stock is currently trading at $34.97

We are looking at around a 78c credit to enter into this trade.

Your best outcome in this trade is for both legs to expire worthless so you can keep the upfront premium. The theoretical maximum profit is currently $390, with the theoretical maximum loss $610.

To try trading for yourself using the most powerful Options Trading technology in Australia, click here for a 7-day trial for our Implied Volatility platform. 

We wish you good luck with your trading, and as always if you have any questions, please feel free to contact our trading desk on (03) 8080 5795.

 

 

*Past returns do not reflect future returns

Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only trade if you are confident that you fully understand what you are doing. If you are thinking about acquiring a financial product, you should consult our Financial Services Guide (FSG) at www.reachmarkets.com.au and the relevant Product Disclosure Statement first.

 


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