Category: Money tips Release Date: 2007-03-12
Marx once said, "Once an appropriate profits, capital of the emboldening them. If there are 10% of the profits, it guarantees to be used everywhere; a 20% of the profits, it will become active again; a 50% of the profits, it is to take risks; to 100% of the profits, it dares to trample on all human laws; 300% of the profits, it would dare to commit any crime, or even take the risk of hanged. "beginning April 3, Wu Liang YGC1 in just 27 trading days up 11 times as much capital in their separate ways under the influence, began a frenzied up. Fabulous wealth effect once again ignited the enthusiasm of investors in the warrants, overnight, warrants seem to have become synonymous with high profits. The current is really high-risk warrants higher income than that?
Wu Liang rise is valuable YGC1 supported: April 3 Wuliangye are stocks closed 7.11 yuan, according to BS formula in accordance with the historical volatility over the past year warrants calculated theoretical value of 1.13 yuan, while the closing warrants for only 1.5 yuan, than the theoretical value of the premium of about 30%. Overseas covered warrants market prices generally higher than its theoretical value of 30% -50% level, thus, the premium level is still at a reasonable interval; May 16, Wuliangye are shares closed 14.90 yuan, the theoretical value of warrants to subscribe for up to 8.34 yuan, and thus warrants the price surge is also reasonable. Warrants are out of other stocks, blindly follow the trend of the rise is entirely irrational, and Wu Liang YGC1 valuable support for the rise is entirely different things. The current high prices of the warrants, have left their high-risk, high-yield nature of the existence of high-risk, high returns are not necessarily typical of high-risk and low return.
Take China Vanke put warrants, the yesterday's closing price of G Wanke 5.65 yuan, China Vanke put warrants closing price of 0.216 yuan, their exercise price was 3.73 yuan, the ratio of a power line, expiration date of September 4. To see whether the price of a warrant overvalued and can not simply look at its absolute price, but through BS formula to calculate the theoretical value, or simply can see the possibilities within their reach price. Vanke put warrants, although the lowest current price of the securities between the two cities, but there are still a great price bubble. Simple point of view, a three-month period, G Vanke only plunge 38%, as prices for investors to buy put warrants in order to preserve the capital, which is obviously a small probability event, we can see very risky. So do the returns really high, given the extreme circumstances, even if the G Vanke in the next three months, the price fell to zero, investors are able to achieve the highest returns nothing but 10 times, while the possibility of achieving this rate of return will not be More than 5 million in prize possibilities. On its existing risk-return characteristics, other than speculation Vanke warrants, much less to buy lottery tickets. Because the same principal and may lose all of the risk of light, lottery could bring you millions of times more revenue.
According to BS formula, the current value of Vanke warrants only 1 cent market 21 times over-estimated. Historical experience tells us that census drawn a bubble will burst, but the bigger the bubble blown, broken faster fall more heavily. Chuan flower drum speculators, always lucky enough to believe that he will not be the last one stick, but who can guarantee? The only safe thing is far from the bubble. In addition, I remind you Wanke Wanke warrants and stock holders, they should be careful not to mistake the right lines.
