Category: Money tips Release Date: 2007-06-28
This week, A-share market has been hot of the warrants trading gradually cooling, the Baosteel Shanghai stock warrants, Wuhan Iron and Steel warrants, put warrants re-entered a downward spiral; Monday in Shenzhen-listed Angang packaged warrants, Vanke recognition Steel and Vanadium put warrants and put warrants are crazy prices have return two days later. This means that there are a number of "Fool" were high hold-up, no choice but to appreciate the enormous risk warrants.
In fact, the warrants on the A-share market investors, is still an unfamiliar area, even from the mature markets of the experience, with a high-risk warrants, blindly into the break undesirable. Even for such high-risk investment products has a great interest in, would like to test the capacity of yourself, you must first do a series of homework.
So that we may wish to warrant a thriving Hong Kong market as an example, take a look at the Hong Kong investors in making investment decisions warrants before the reference is that which indicators. Figure 1 to a warrant issued from Hong Kong's Web site, where "the city data" part of the seven categories of indicators, is Hong Kong warrant market, basic information.
Leverage ratio: This is an investment in Warrants on your behalf to enlarge the proportion of funds data. If a warrant leverage ratio of 5, representing the theory is you only need to invest in shares of 1 / 5 of funds, they can, in theory, is to capture the benefits of stock fluctuations.
Premium rate: For the case warrants, or warrants plus the exercise price is higher than the market price after the price ratio. This means that you buy the warrants, and held to maturity, are stocks of this magnitude must be increased in order to profit through the exercise of the right to. For the purposes of put warrants, it would take down this range in order to profit through the exercise of the right. In general, the premium rate is always lower the better.
Implied volatility: Implied volatility depends on the C of E extravagant treat. This is the market price on behalf of the warrants into warrant theoretical price calculated by the model implies is stock volatility. The higher the implied volatility, indicating that warrants the price more expensive. Generally implied volatility will be slightly higher than the historical volatility, but too much higher, then the price of warrants may be high for some outrageous.
The actual leverage ratio: As the warrants have been volatile, therefore, decide what you really zoom ratio of funds is the actual leverage ratio, this indicator is more useful than the leverage ratio.
Historical volatility: the representatives are fluctuations in the ratio of shares in the past. Generally larger this indicator shows that stock volatility is greater.
Delta: changes on behalf of its ordinary shares for every one unit, the unit will warrant changes in the number of units. For example, a warrant of the delta is 0.6, then the underlying shares for every change of 1 yuan, 0.6 yuan warrant changes.
Price inside / out of the money: The warrants, if the exercise price is less than the share price, then its price will be in the inside, otherwise the-money. For put warrants, if the exercise price is higher than the share price, then its price will be in the inside, otherwise the-money. In general, the price of warrants within the outside than in the price is good, that its intrinsic value, in the long run every day wear and tear because of the time the amount of depreciation of the smaller, long-term operational capability.
Street Cargo ratio: This value creation on behalf of issuers of warrants, how many in the hands of retail investors. In general should not be too high, such as more than 80%, it means that warrants overheating, excessive pricing may deviate from its investment value. But also inappropriate low, which means that once were sought after, publishers can always sell a large number of warrants, low prices, so that lower income warrants. This point, we learned from Figure 2 warrant price and the number of street goods can be at a glance.
Currently, A-share market for the warrants disclosure of information if the Hong Kong market has not improved in the SSE and the Shenzhen Stock Exchange official website, although the warrants are equipped with the appropriate information release page, get a small amount of investment information warrants, such warrants the same day transaction price, trading volume, the creation of the total number of warrants, and warrants the name of newly created every day, the creation of quantity, but most of the data mentioned above is currently not yet available. However, there are a number of brokers have all relevant research. Yang Guoping, analyst Shenyin track warrants in accordance with the four week closing prices to calculate the market a few warrants some indicators. Interested investors can take advantage of the knowledge described above, take a look at six warrants on the Shanghai and Shenzhen market, "investment value."
