best call warrants to trade in xjo/ bhp

Goodmorning all,

Time to look at the CALL WARRANTS,CFD'S or OPTIONS for a quick trade on the XJO and BHP or RIO.Another GAP down for BHP...now looking like an Exhaustion Gap as it's called.

For BHP look to BHPWMA,BHPWMB,BHPWOK with BHP at $31.34 their price are as follows...WMA 28/29cents WMB 18.5/19.5c and WOK 24.5/25 with the ratio of Buyer to Sellers at 1,315,000 to 2,820,000 the ratio i talk about of about 3 to 1 where the buyers are thinning out and the price drops to a level where the sellers don't go as low, unless desperate to sell or panic.

As this happens the buyers start to build and the ratio closes slightly.Basically BHP can only drop slightly more as support begins to build up.This is why it is time to look at the CALLS for a quick trade IN AND OUT over a 2 to 5 day period.

Because of the USA reporting season and the DOW's sharp drops, we could have another day down and then the kick up....the next 7 days in the USA are going to be very volatile....and this brings OPPORTUNITY.

So what we do is decide to enter today or 1st thing Thursday morning or buy some today at the best price and if it drops further tomorrow we buy the second lot at Thursdays' price...remember this is for a QUICK TRADE IN and OUT for a few days.

Best XJO Calls to look at are XJOVOD, XJOWME,XJOWMD and XJOWMF...there are a couple more with closer strike levels, but they are also priced higher.VOD at 44cents,WME at 40/40.5c,WMD at 50/51 and WMF at 28/28.5 cents as the XJO is at 3718...all have Sept. expire dates
Best RIO Calls are RIOWMF,WOD and WOC...32/33,31/32 and 73/74 at $46.60...with Sept expire dates.

I won't get into the technicals,as many others can post graphs etc...we can see what is happening and where support/resistance is what type of head/shoulders are forming etc..etc..Example XJO shoulder on May 11th the head on the 12 June, when i called and said to buy Puts and the next shoulder on the 30th June...from there a sharp drop down for 6 days.
Note also as the XJO has been dropping, the VOLUME traded is getting lower each time.

So those who care,watch close and deicide on entry points today or tomorrow....for a 2 to 5 day trade.

PLAN YOUR TRADE, THEN TRADE YOUR PLAN.

Cheers,

MINOTAUR.