A follow up on my post last Friday regarding the PUT play on XJO and CBA etc.. I mentioned that FRIDAY would be a good day to decide to enter and take a closer look.I personally was out and away over the weekend and did not enter Friday. If i was infront of the screen i would have decided MONDAY as the best day. I was casually watching Friday and ringing to check quotes etc..and decided that we could have 1 to 2 more days of slight rises...This is why i mention to watch like a HAWK and make your decision on best entry times....follow market depth close as my entry can change based on DEPTH at the time.
I also mention that even if we enter about 2/3 days to early, we just sit and wait, rather than panic and sell out only to see a down turn the next day...after people sold out. Sometimes it takes 3 days before the move actually comes through. Most times i catch it the day before and sometimes i might get in 2/3 days to early...i can't get all of them spot on every time.This time i called it for Friday and has taken an extra day to play out.So we got Monday as a rise and today looks to be ready to have a slight pull back....so getting in MONDAY or 1st thing this morning would have been the best entries...so getting in Friday for those who did...you are ONLY 1 day too early. ..that's pretty close.
If this goes on for another 2 days and i am 5 days to early...that is what i call a WRONG trade...slightly too early...otherwise most times it would be only 2 days and then the move....which we then just sit and wait the extra few days.
The best way to trade on an occasion when the market goes for a few days too long we either cut loses and get out and wait to re-enter or sit and hold and BUY some more again at the lower prices and average out...this is what i do most times and it works most times for me...rather risky but it works for me and very rarely does it go against me.
Example CBA is now back to where it was Friday...$39.50..this is what i mean by HOLD on and Have patience for a couple of days.The warrant got about 3 cents cheaper and is now back to where it was Friday.
As i did not get in Friday i was looking to get in Monday or early this morning for the PUT play.Best puts are CBAWMP, CBAWOT and CBAWOU.For XJO it is XJOVOT, XJOWMQ, XJOVOS and XJOWM2.For BHP it is BHPVZZ, BHPWOQ and BHPWMT or BHPVOS.
I am watching close in the morning, for entry points today.I got some CBAWOU yesterday and will top up more today sometime. I am looking close at XJOVOT, CBAWOT/CBAWOU and BHPVZZ. CBA did it's 4 to 1 ratio, i mention where BUYERS where 945,000 units v's SELLERS at 230,000 units...4 times more buyers than sellers...which shows the Sellers very thin and a reversal due.This happened at 10.30 this morning.
CBA got to the resistance range i mentioned last week which was $39.80 to $40.20...it hit this area and retraced straight away.For those who have not entered yet....today is a good day to consider it. Even if we get in today and have 1 more day up...i don't think we will, it's okay, just sit and the turn will occur....in a 2/3 day period.
Don't forget the IN and OUT strategy over a 2 to 5 day period.So watch close today and decide on entry points or look to top up at these lower levels,if posters got in Friday or Monday.Note also that volume on CBA has been LOW...for the last 3 days..? Rising price, BUT falling volume..?
CBAWOT at 18.5 cents and CBAWMP at 23.5 cents. XJOVOT at 36.5 cents. XJOVOS at 19.5 cents.
Watch BHP close,as it has quarterly report out Wednesday and could move the stock up, if results are very good and then it will make a top and pull back....so best entry would be then on the puts.
WATCH LIKE A HAWK AND DECIDE ON ENTRY BY WATCHING MARKET DEPTH VERY CLOSE.This is what can change my entry points as the buyers/sellers fight it out.Looked like CBA the 1st half hr this morning, was best time for entry.
(20min delay)