Date: 13/06/2025
*** GENERAL AVICE ONLY***
BBOZ seeks to generate magnified returns that are negatively correlated to the returns of the Australian sharemarket. The Fund expects to generate a magnified positive return when the S&P/ASX 200 Accumulation Index falls on a given day (and a magnified negative return when the index rises on a given day).
A 1% fall in the Australian sharemarket on a given day can generally be expected to deliver a 2% to 2.75% increase in the value of the Fund (and a corresponding decrease in the value of the Fund if the Australian sharemarket rises).
Trade Rationale
There is recent news of more military action in the middle east. Politics aside, the XJO has just recently touched new highs this week and just needed a new catalyst for traders to take profits on this recent run. So this provides us with an opportunity to Short/Hedge Australian equity exposure, knowing that the risk is very easy to manage on the position
BBOZ is a leveraged short on the XJO, so size accordingly
Trade Strategy:
Buy BBOZ up to $23.50
Stop Loss $22.50
Initial profit target $25.50
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.