Posted Wednesday 25th August 2010

Trade Idea for BLD - Boral Ltd

BASIS : Technical Analysis

• Based on this kind of analysis, BLD appeals.
• Currently in a downtrend.
• Housing sales numbers out of the US overnight were far worse than expected supporting the double dip recession fears.
• Boral has substantial US housing exposure. Deteriorating conditions could spark further selling in stock.
• A continuation of the downtrend could be just about to commence.
• A vanilla bought put spread. (debit position only, no additional margin requirements)

LOOK AT:

• Buy October 443 put. 31c Dr
• Sell October 393 put 11c Cr
• Net 20c debit. Or $200 per lot. (eg 20 lots = $4000,)

Max Gain 50c.
Max Loss 20c

• A trader’s play.
• Please ring the desk to discuss the trade before executing 1300 825 742

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