HSBC Option

Category: Options

05-07-2011

HSBC is one of the world’s largest banks with high exposure to fast growing emerging markets such as Hong Kong, Asia Pacific and Latin America. The stock is supported by a good dividend yield of 4.1% and trades at a discount to rival Standard Chartered despite offering similar growth prospects. Morgan Stanley has just issued a 760p price target, indicating 21.6% potential upside.

We are recommending option traders sell the September 580 puts for a premium of 7.5p.

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