a confession, page-7

Hi Bendo.

Sorry that I took so long to answer.
I was busy taking a bit of profit on BHP and did not have time to get back.

You are exactly right.

Bull spread is when you buy one call say ANZ AUG $17.00 and sell say ANZ AUG $19.00

So you pay bit less than for a naked call.

One drawback is that you are paying brokerage on both, so take that in account.

In choppy market like we have ATM you can buy the sold call back when SP drops and sell them again if the price rises.
You basically writing options without having to buy shares.

In the choppy markets the options near the current price have highest percentage value.

BHP has been pretty good to me so far. up one day, down the next.
Helps to know what you doing though and have to have a view where the share is likely to go near term say one month or three. And if you right you do alright.

My view is the market is trying to pick itself up of the floor but it is still bit dizzy after the recent knockout.

Good time to trade the options then.

Brian.