BUY - XJO via mini warrants
*** GENERAL AVICE ONLY***
Trade Date: 22/11/2023
Recommendation
Buy XJOKCH (XJO mini call warrants)
Entry price: $4.70 (XJO circa 7070)
Target Price: $5.50 (XJO circa 7030, +17%)
Stop Loss: $4.30 (XJO circa 7150, -9%)
Rationale
XJO has been consolidaing sideways in a small range over the last few trading days. Ranging between 7035 and 7080. With US markets about to have their Thanksgiving holidays, expect the XJO to be quiet over the next few days again. Looking at the seasonality charts, there is usually a decent finish for the end of November. So this is a chance to get set on a long position on the XJO where the downside risk is easily managed. If XJO can hold these levels, it might play catch up to the S&P and rally back to the 7200 level
Use XJOKCH (XJO mini call warrants) to express this long view. They are priced around $4.70 which is approx XJO 7070. These miniwarrants are delta 1, meaning they move up 1c for each 1 point on the XJO. So size trade accordingly
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.