GREATWARRANTS
MAYBANK-C34 TOO GOOD TO BE TRUE !!!
GreatWarrants
Publish date: Tue, 02 Jan 2018, 12:06 AM
GreatWarrants
0 22
All investment decisions are at your own risk.
Warrants play are for aggressive traders who capitazlizes on the power of leverage
Warrants play are for aggressive traders who capitazlizes on the power of leverage
MAYBANK-C34
Exercise Price : RM 9.25
Conversion Ratio : 2.5
Premium : 0%
Maturity Date : 30/08/2018 (240 Days)
Current Price : RM 0.22
Issuer : CIMB BANK
WHY IS MAYBANK C34 TOO GOOD TO BE TRUE??
Look at the Conversion Ratio of 2.5 :1 !!!
It is a crazy conversion ratio too good to be true !
This means that for every 2.5 bids Maybank moves, this call warrant would move up by 1 sen. In terms of % gain, it would be huge leverage opportunity for this call warrant.
To be honest, there is NO other call warrant in Bursa Malaysia with this amazing conversion ratio for a stock priced at the RM 9- RM 10 range.
Most warrants have a conversion ratio higher than 4:1, or even 8:1 if the mother share is priced at the RM 9-10 range.
ON TOP OF THAT,
This warrant is trading at 0% Premium and has 240 days to maturity !!!!
Once again there is no warrant like this trading at 0% premium with so many days to maturity in Bursa Malaysia !! This is definitely a gem to watch !!!
ASSUME 2.5% PREMIUM ON MONDAY
Assuming the market realizes how undervalued this warrant is, the market maker may imply a 2.5% premium and that would mean this warrant would be trading at RM 0.30 !!! That is already a 36% gain from Friday's closing just by ARBITRAGE alone !!! There is a chance that this warrant will gap up significantly on Monday.
WHAT HAPPENS IF MAYBANK TRADES AT RM 10.50 !!???
RM 10.50 is just 70 sens away from Friday's closing. However, This warrant would be worth RM 0.50 (+127%) if MAYBANK hits RM 10.50 in 240 days. This is highly possible as the market is so bullish right now !!!
With such amazing upside potential, this call warrant is too good to be true !!!!
Thank you for reading,
The Originals,
Greatwarrants.
Caution Note !! Trading warrants is high risk and should only be done by professional and experienced traders who are aware of the risks involved in trading warrants !!! Please avoid trading warrants if you are unaware of how it works. Greatwarrants does not want you to simply buy things which you are unfamiliar with, as you must have sufficient knowledge of warrants before trading it. If you are unfamiliar, consider buying the underlying asset for a safer play at your own risk. Tq.
Disclaimer:
|
Trading Warrants is a great tool for leverage. However, high returns come with high risk. Therefore, investment decisions should be borne at your own cost and I will not be held liable for any investment decisions made. DO NOT BUY WARRANTS IF YOU DO DO NOT KNOW THE RISK. The market does not need you to push up the warrants price. Let the market issuer play its role and the forces of supply and demand take place for the case of Warrants. |
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Discussions
Be the first to like this. Showing 27 of 27 comments
Dear GreatWarrant,
Its should be C34..kindly correct it to avoid confusion.
Thanks
2018-01-02 00:30
Yeap its C34. Thanks for pointing out.
My apologies.
Have a great trading year ahead.
2018-01-02 01:31
Same to you bro...have a greater trading year !
Hope C34 would be a great starter for the year :)
2018-01-02 01:40
hehehe , now ada orang tau n tulis essay pula , anyhow late is better than never lo , ahahahaha
2018-01-02 08:14
is cheap among most of the call warrant in mkt , anyhow pls aware of divvy announcement , it hurt call warrant :) ,, any increase in price movement now will fully follow effective gearing , so is small knife cut big tree la
2018-01-02 08:22
those who bought should sell last friday due to aunty uncle also tau punya so call window dressing ...... hheheee ...so let see can buy back cheaper not la :)
2018-01-02 08:26
Wait Maybank retrace first , same Like last year , up on the last day but opening drop ... but mid term should rise back
2018-01-02 08:39
sure drop for first day la , 0 premium due to window dressing punya ,, anyhow is still low la the premium but not as excited as apatu lo ... ahhahaaha
2018-01-02 08:50
sw is cash settle n mm wont fight with u la , as long as price can go up , they have no choice but to follow punya
2018-01-02 08:56
If CIMB follow the gearing as mm they should offered to buy at a premium, no?
2018-01-02 09:00
Should be good leverage tool for long term players. 240 days to maturity.
Where to find this type of gem? Haha goodluck...
2018-01-02 09:52
CIMB probably has valued the mother below 9.00 or something and has cheated by not market making...
2018-01-02 10:07
Maybe CIMB is just jealous of Maybank.. always tailing behind Maybank thats why they dont want to give a good premium...? Haha..
Anyway its their loss if they misprice the warrant it or undervalue it.. Smart money like us will capitalize on this opportunity in present and future.. haha..
2018-01-02 10:16
Good article. thanks for sharing and its quite true this warrant is undervalued. Will consider buying.. Tq.
2018-01-02 10:34
example la .. if b4 this c34 expired then mbb declare like last year 32 cents divvy ,, so u pi kira lo is how many percent ?
2018-01-02 14:25
after 30/8/2018 election results come out... if BN win oklah.... BUt if BN lose... MBB mati man... can still be in the money?
Remember if BN lose sure MBB CEO will cut...
Too long and too uncertain if you ask me.
2018-01-04 09:14
When has BN ever lose?
If BN lose the whole market will plunge 30% not just this stock haha..
This CW still good..Based on 5th January closing on Friday of RM 0.25, ALready + 13.5% since 0.22 and made a high of 0.27 (+22.7%) Since the writing of this article.
Should be monitored for long term. Still bright ;)
2018-01-07 17:37
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CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
sell
DJ down 100 points so CI look overbought now? Perhaps wait Maybank 9.5 and C24 15 sen better?
2018-01-02 00:21