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.

Please find the cyclical options we are recommending this month.

Please read our complimentary guide to the traded options market with some previous recommendations included. This is a highly specialised field, often out of the reach of retail investors. This guide focusses on GAM’s approach to trading options.
GAM has been trading options on behalf of clients over many years and we target annual returns of 25%-40%.
However, this is a high risk strategy which can result in losses that exceed your initial deposit. Options trading is not suitable for everyone and we recommend no more than a 10% allocation in a portfolio.
To establish whether options trading is appropriate for you and, if so, which strategies are suitable to your
circumstances, please give us a call.

Please find the cyclical options we are recommending this month.