Healthcare sector ASX rally soon as cyclical out of risk - onAs there has been quite a strong bullish move in the past month in the general
market in risk-on assets such as financials, as a defensive move Funds may cycle
out of these back into more defensive stocks through June into end of year reporting
to lock in profits.
Anticipating this move, I will trade a for a bullish move in Healthcare over 4 weeks
using options on the largest ASX stocks in sector such as COH / RHC - put / call interstock spread.
The usual set up is :
6 weeks expiry
COH bear debit spread a slightly out of money (hedge leg)
RHC strike calls 1 strike out-of-money
skewed bias Bull : COH 33% DELTA short / RHC 66% delta long
Happy to discuss
