Category: Money tips Release Date: 2006-03-17
National Day around the deep end of the C of E can be put to accelerate the reunification, but also bring out a wave plate to adjust warrants. Warrants as derivatives, whose value of time lost on a daily basis, especially the price of the end of outer wheel will be the rapid loss of value of time, once out wrong, it could not wait recovers. As a result, end round of investment methods and trading is very different to other warrants, was found not to avoid death cover their situation, more bogey down the share of low-cost. 2 months from the due date of the warrants are often referred to within the end of round, round the end of the market can put a deep, Wuhan Iron and Steel, etc. Call and put warrants.
We have repeatedly stressed that retail investors should not be involved in end-round investment. If you want to participate in end of round of investments in warrants will have to take into account the properties of premium, the actual leverage and personal risk tolerance, as well as the market outlook, expectations and other factors, while inputs should not exceed the amount of warrants its own maximum loss acceptable.
In accordance with the situation that warrants the price of warrant exercise price and the positive relationship between the share price can be divided into price, the price of intra-and parity. Three different conditions, their treatment methods are also different. One of the most valuable price is usually cheaper and slightly outside the warrant.
In particular, for deep-money warrants, depending on the level of their premiums, as well as the size of the actual leverage. If the premium high, the actual leverage is small, is not involved in good, because leverage is too low, future earnings may be inadequate compensation for the cost of looking in the right direction even have to lose money; if the actual leverage is not too great and the price of warrant whether, within the invest in depends on your view of the market outlook. If WISCO Put, the price level of 4.95% within the same time, with 5.5 times the effective leverage and 6.91% of the premium, the premium is not too high, if the shares are short-term bullish uptrend, you can wait for an opportunity is being turned up to share .
Low-priced end of round has always been a master of the beloved warrant, the risk is also the largest. If the warrant premium is not high, optimistic and will continue to hold, bearish on the throw. Prices slightly outside the end than the parity round round of the conditions are often more speculative, because of its low trading price, usually have higher leverage multiples, the potential rate of return and the extent of losses are high, investors should be according to their risk tolerance whether the ability to invest. Such as the deep slightly out of the money can be put, with 22 times the actual leverage and 5.85% of the premium, only the remaining two trading days, unless the investors are deep on the 26th will be able to stock fall more than 6% have strong expectations, or intervene in is the blind behavior. As for the depth of the end of round price outside, or away for good, because warrants were exercised at maturity is little chance to become a great opportunity for waste paper. (Send
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