Nuggets warrants market in three measures investors profit model Money Tips

Category: Money tips Release Date: 2007-01-17

Source: China Securities Journal

Warrant from the first listing is only less than a year since the time of warrant turnover is constantly hitting new highs. A myth of the birth of a rich-quick let Warrants 1:00 hot. Money can go to avoid the risk of a trial for many eager investors who naturally is an ideal answer.

Recalling the past year, the operation of the warrants market, can be found, investors generally fall into three categories of the profit model. Different risk preferences of investors to suit their own model here to find a source of wealth.

Is bullish stock warrants on the peg

Shares are rising by leveraging warrants rose, which is warrants the most common mode of operation. In contrast, the risk is also easy to control the means of warrants profit. To Wu Liang YGC1 for example, the April 3 warrant listed on the same day's closing price of 1.502 yuan, but the 25 trading day May 16, its price has soared to 10.54 yuan, the cumulative rise to 600%. Despite the tremendous gains, but because of the stocks also rose by 110% over the same period, making premium rate warrants but declined from 18.6% to 17.3%. Wuliangye This case clearly illustrates the leverage effect of warrants arising from the outbreak of profit opportunities. Similarly, the first listed on the following day from the JTB1 to May 17 rose 315 percent, but because of the stock rose 25 percent over the same period, the premium rate from 22.3% to 53.9%, the increase was only 142%; Baotou JTB1 from 5 From 8 to May 22 rose 216.2 percent, while the stock is up 42.1% over the same period, premium rates increased slightly from 32% to 33.4%.

In general, optimistic about a company's long-term performance, buy stocks than to buy warrants. Of course, how to judge the value of warrants, had to take into account the valuation level that the rate of premium. As of last Friday, 10 warrants, the average premium rate was 33.6%, which pioneered JTB1 Baotou JTB1 and the premium rate higher than 45%, relatively high; and 10000 Chinese HXB1, Anshan Iron and Steel JTC1 premium rates were 13.4 % and 26.3%, it is worth being optimistic about stocks investors to consider.

Put warrants pure speculation Games

Currently listed warrants have 10, while the put warrants as many as 15. Thus, sending the company warrants its most optimistic about future prospects, so they tend to release paper at maturity is likely to become one of the put warrants.

However, precisely those holding a higher risk of the put warrants and become the hot money speculation props. In this irrational speculation under the warrants have lost fundamental factors known, but reduced to a symbol just speculation. For example, Wuhan Iron and Steel JTP1, three consecutive daily limit after the listing closed 1.86 yuan, while the current price of 0.83 yuan, only a fraction of the remainder of its premium rate accordingly, from 56.4% to 23.8% return. Wuhan Iron and Steel warrants listed earlier, the characteristics of the scarcity of resources has led them into the market early hype.

In May of the stock market has been, then appeared in another type of speculation --- money-driven. Entered in May, after going separate ways steady stream of funds into the market, put warrants in this round is also not immune from the wave of speculation, in the May 8 to 19, 12 put warrants (not including the recent rise in three ) Average rose 60%, Wu Liang YGP1 with 144.8% of the rise came first. For the majority of put warrants, the basic concern is not mainstream institutions, making short-term hot money speculation Fanyunfuyu object. In this game of pure speculation, if not get out of short-term expert will be difficult.

Underlying + Put Warrants risk-free arbitrage

Put warrants are stocks with a lock-down function of the risk, so when put warrants significantly underestimated when the stock + put warrants are risk-free arbitrage opportunity to appear. Shanghai market JTP1, Valin JTP1 market are thus became the focus of attention.

Because investors are optimistic about G Valin, G Shanghai airport, afternoon performance, so its put warrant the price way lower after the listing. In its first day of listing, Valin warrants to its share price now and for the 5.285 yuan, while in March 24, this value of 4.9 yuan on the below the exercise price, to 4.882 yuan, to the April 28 meet 4.625 yuan low. This means that if you do not take into account transaction costs, dividend payout and other factors, to 4.625 yuan at the same time purchase its ordinary shares and warrants, approximately 5.95% after one year receive the proceeds. A stock market as a rare hot market, so that it does not contain the risk but the benefits in the limited arbitrage opportunities have been most investors ignored.

However, a comprehensive exchange of seats announced transactions, the Fund regularly report information such as point of view, there are still some funds, brokers involved in the arbitrage speculation. According to the author to statistics, Valin, Shanghai airport, the value of self-arbitrage portfolio the largest increase since the low, respectively, 23% and 19%, showing that even short-term operation, the funds and other institutions also received considerable gains.