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ANZ pulled back today, been stalking this stock for the past few days trying to sell the $28.3 insurance for net credit fo 10c told my broker to leave the position open and see if I get filled. Since i’m a lucky guy by birth, I got filled for this one. ANZ has been hammered pretty badly over the past month shedding over $2.71 (8-9%) from the high of $31.5 to today’s close of $28.79. There’s plenty of support at these levels and looking at the banking sector, majority of the banking stocks have not be hammered as bad as ANZ. ANZ should be a good trade and a good stock to diversify in for my portfolio.

This month my whole pie is full using just over 50% of my money pie in 6 trades. This includes the NewsCorp (NWS) which i have rolled out from last month. If all goes well this month, i am looking to cash in $6,168.52($9,137.32 -$2,968.8 for NWS cost to roll from May 2007). This is the best part of my trading plan, I wait till about 2-3 days before 28th June 2007 watching the market once a week to check the position if I choose to. Its pretty passive.

 Anyway, need to post my CFD loss now.

The Trade (ANZ) - Traded on 30th May 2007
Sell Jun $28.3 Puts @ $0.245
Buy Jun $27.82 Puts @ $0.145

Expiry = 28/06/2007
Share/Contract = 1042
Max Profit = 0.10 (0.245-0.145)
Max Risk = 0.38 [(28.3-27.82) - (0.245-0.145)

Return on Risk = 26.31%
Breakeven = $28.2

I opened 10 contracts:
Reward for trade (excluding fees) $1042.0
Reward for trade (including fees) $832.6
Value At Risk $3,959.6