cba,nab,anz etc expensive or not, page-29

I have encountered approx 40-42 different
synthetic eto option strategies, this excludes
utilising other derivatives such as futures etc

The Aussie option market is to illiquid really.
However does provide a valuable tool to generate
profits & manage risk

You can adopt different stradegies depending on how
u view the market ,the sector & the specfic stock concerned.

My view with the banks is mixed we are at an important
point maybe defining

Both NAB & CBA are now trading below 200 day moving average on 15 yr chart

However short term both are trading not far from recent support levels which gives some credence to a short term rally

At best I reckon u will see banks range trade over the medium term as they provide solid income straem for investors ,

So with Nab for example u would expect it to hold around $28.50 ,but if it doesnt all hell would break loose
it could fall 50% of recent range which is back to 09/01`lows of $25.50

now if I sold say 10 $29 jan puts got 60c on friday
(im effectively buying @ $28.50 )I the buy 35 $27.50
jan puts @ 17c (im selling selling 3.5x as many at $27.15)

Hence I am trying to manage risk

I really dont care what happens with NAB (as long as Goblin is still loosing money) However possible senerios

If it rallies so what, Cost netual & im not prepared to punt on the upside there a far better stocks than the banks

If it breaks $28.50 Im betting it will fall quickly
& Ill trade out the volitilty with a capped profit( u have to remeber if it does break support put prices will be at a premium id sooner be set now)

If the stock is trading @ $27.15 at close of contact & I havent done nothing Im out of pocket $1.35 or on 10 contracts $13500, im unlikely to do nothing but I do understabd the downside

anyway I hope that helps & im sorry not prepared to offer advise on your own ANZ sitauation other than

do the opposite to "loser"