Category: Money Tips Date: 2006-05-30
Results of recent market speculation is the focus, as heavyweight stocks such as length and system performance of individual stocks and other property stocks, will gradually be announced at the end of
In August, the Hong Kong blue chips into the tray results announcement period, the Hang Seng Index showed the overall strength of the Hang Seng Index rose to 15508 points, the highest, the highest number of new four-year high. Is mainly funded and the speculative results and other factors.
Performance is the focus of recent market speculation lies, as heavyweight stocks such as length and system performance of individual stocks and other property stocks, will be announced at the end of one after another, which warrants investors, there are many areas to pay attention to.
First of all, pay attention to the level of implied volatility is high.
With the recent trend to the big city, well, speculation results in vogue, many investors are holding to buy up state of mind not to buy or to buy the subscription card chase.
I worry that investors may unwittingly bought a number of implied volatility may be high nest round. The turnover of large and extended to the high volatility may be pushed to the nest round, very often, who are more short-term and high street goods Warrant. Once the adjustments in the future implied volatility, which warrants the price drop speed, range will be more abrupt, large, investors pay attention to this point.
And to determine whether the level of implied volatility Warrant high; relatively simple approach is to compare whether the increase in subscription cards are more related to increases in stock more (in real terms of leverage and the rest close to the nest rotation contrast).
If investors price in the short term regardless of the level of blind pursuit to buy the subscription card, such a call warrant is likely to have been pushed up as high as the level of implied volatility in your favor.
Investors enter the market when the selection round, but also pay attention to the relevant issuer is actively involved in the sale of the asking price. If both sides were unable to find the sale of listed issuers will have to be careful that the Warrant is in the short term, sentiment has been affected by the market price.
Second, investors should pay attention to, even if the purchase warrants of the implied volatility levels are not high; but after the announcement of company performance, because good see the light of the relevant warrants implied volatility is likely to decrease.
Also, if the performance of most investors after the announcement of good news by selling securities if the issuer may buy back more a result of warrants, and sell off some of the options for hedging. Increase in the supply situation, OTC options, implied volatility is likely to decrease, thus affecting the overall level of implied volatility of warrants.
After results were released in order to avoid the overall implied volatility risk may be reduced, it is recommended that investors before the publication of results, at least sell half of the warrants, in order to lock in profits. In the selection round of the aspects, but also with some street goods moderate, longer-term (about 4-5 month period or more), and posted prices Warrant first choice. A result of these warrants by the downward pressure on implied volatility less affected.
As for those results released after the intervention in the market to buy round of persons, excluding the positive direction of stocks aside, investors need to monitor the nest round of the premium. Because the results after the announcement, the premium investors might be misleading.
End of the company's recently announced results and dividends, investors may find a lot of nest round of the premium reduction, or even a negative premium, causing some investors who value a premium, that even lower than before the nest round. In fact, this is an illusion only! Warrant premium so reduced because the premium itself is not reflected in the forthcoming ex-dividend stock factors. Is ex-dividend stocks, the premium will naturally rise.
To sum up, fried with warrants performance, it will certainly bring a lot of risks for investors. But as long as investors control is good, may well be short-term profit opportunity.
