Posted by stockmanmy > 2017-01-26 02:51 | Report Abuse

rightly or wrongly, when I want to trade call warrants, I will just trade the one with the most volume for the following reasons...1. I am too lazy to go through the list 2. make or lose, I want it to be because of the trend, not because of execution leakage. Liquidity is number one. 3. I want to be where the action, not sitting alone trying to sell my call warrant after I bought, when all the customers are some where else.

3 days average volume would be a good inclusion in the table.

Posted by stockmanmy > 2017-01-26 03:06 | Report Abuse

how much premium for how much gearing and time? I don't care. The one with the highest volume gets my vote.

Posted by Icon8888 > 2017-01-26 03:50 | Report Abuse

Nope

Should follow KC method of buying based on gearing and premium

You will know the difference when they start moving - some are more sexy some are boring

I am a regular Call Warrants punter, i am basing what I say on my own experience

Posted by supersaiyan3 > 2017-01-26 03:55 | Report Abuse

1. If it has 20% premium, that means it will lag about 20% over time.

2. If your point of entry is risky, its better to buy longer maturity one. If you really know what you are doing, then you should buy the ones with the lowest premium because it also bring you the highest return.

3. If you really know what you are doing, there is no risk. Risk is just a concept. The end result is either 0, or 1.

Posted by BabyTA > 2017-01-26 07:40 | Report Abuse

eh bomb topic sikit, normally how long is the process for warrants exercising to ord share? 1 week? 2 weeks?

Posted by r°Moi > 2017-01-26 08:21 | Report Abuse

.


On the flip side... is it easy for an IB to make a loss on the call warrant it has managed to sell?

.

Posted by stockmanmy > 2017-01-26 08:54 | Report Abuse

icon

let the market decide for you what is the trade off between premium, gearing and time value....its a huge mess I don't have to decide...its where the action is.......

Posted by SALAM > 2017-01-26 08:57 | Report Abuse

Stockman, your method the most practical and down to earth. Forget those complicated and complex formula which in the end might just work on theory only, on paper only. Wht we want: put money, take money = simple and neat. Win or Loss = your vision and swiftness matters most

Posted by stockmanmy > 2017-01-26 09:15 | Report Abuse

hahaha.....let other people do the thinking.
I just trade trend.

Posted by limml > 2017-01-26 09:31 | Report Abuse

The Greeks are important but you must be very careful that in a small market like Bursa, some calls or puts may be cornered. Once you are in, you are up against the issuing investment bank.

Posted by kcchongnz > 2017-01-26 11:20 | Report Abuse

Posted by limml > Jan 26, 2017 09:31 AM | Report Abuse
The Greeks are important but you must be very careful that in a small market like Bursa, some calls or puts may be cornered. Once you are in, you are up against the issuing investment bank.


You are absolutely right. It is a highly uneven play field.

Posted by Jay > 2017-01-26 12:47 | Report Abuse

investment banks are not dumb, there is a reason why they issue call warrants instead of buying them. statistics have shown that 95% of the time call/put warrants expire out of money, which means if you made good profit, sell and not greedy and hold until expiry. fast in fast out

Posted by Jay > 2017-01-26 12:55 | Report Abuse

when they sell call warrants, investment banks are not afraid that price will go up, but only if price goes up beyond a certain level, which means a margin of safety for them.

and recently I think one bank got fined for manipulation of share price to make sure the call warrants expire out-of-money. one got caught, but I would think that such practice is prevalent in the industry, so just be mindful what you are up against

Posted by kcchongnz > 2017-01-26 12:57 | Report Abuse

Posted by stockmanmy > Jan 26, 2017 03:06 AM | Report Abuse
how much premium for how much gearing and time? I don't care. The one with the highest volume gets my vote.

Posted by Icon8888 > Jan 26, 2017 03:50 AM | Report Abuse
Nope
Should follow KC method of buying based on gearing and premium
You will know the difference when they start moving - some are more sexy some are boring
I am a regular Call Warrants punter, i am basing what I say on my own experience

WHICH METHOD YOU FOLLOW WILL LIKELY MAKE YOU MONEY PUNTING CALL WARRANTS? FOR ME,IT IS CRYSTAL CLEAR.

BUT ONE THING SO SURE, MOST PEOPLE FOLLOW THE FORMER, MAY BE 90%. THAT IS WHY THE OUTCOME FOR THOSE WHO PUNT CALL WARRANTS FOLLOW THE BELOW.

Posted by Jay > Jan 26, 2017 12:47 PM | Report Abuse
investment banks are not dumb, there is a reason why they issue call warrants instead of buying them. statistics have shown that 95% of the time call/put warrants expire out of money

Posted by SALAM > 2017-01-26 15:06 | Report Abuse

Buy/sell CW are pure are pure punting, a game of bacarat where players try to read trends and probability. In CWs premium, tenure and possible stocks prices driving events are my simple guide. Volume assists for entry and exit. Fools would hold for expiry like investing FVI in stocks ?

Posted by DONGFANG > 2017-01-26 15:54 | Report Abuse

Why AAC38 alone is missing from the table? Just curious as i all in C38

Posted by insulter > 2017-01-26 16:10 | Report Abuse

kc is asking people to jump floor from the call warrant...

Posted by supermx2 > 2017-01-26 16:57 | Report Abuse

C49 is having the most potential as the gearing is low and expiry date is still far.

Posted by kcchongnz > 2017-01-26 23:07 | Report Abuse

Posted by DONGFANG > Jan 26, 2017 03:54 PM | Report Abuse
Why AAC38 alone is missing from the table? Just curious as i all in C38

I have included c38 in Table 1. As c39 is trading at a smaller premium and higher gearing, c39 has a better risk and return profile than c38 as shown in amended Figure 1 in the article.

It means it was better to punt on c39 than c38 at those prices then.

Posted by DONGFANG > 2017-01-27 00:12 | Report Abuse

Agreed C39 has less premium + higher gearing than C38. But its liquitity is too low, almost no volume and need to buy from warrant issuer with higher price in sell queue. Furthermore, its expired date is 1.5 months shorter than C38, it is indeed very risky with such premium when only one months plus left.

Posted by lcwin > 2017-01-27 09:48 | Report Abuse

Simple General analysis for call warrants
Never pay more than 1 to 3% premium for every month of time value especially as it nears its expiry date.
If gearing is less than 2 don't bother
If not much trading volume don't bother unless you play small.
Warning!
Due to small amount of Warrants usually issued, IB and Buayas knows who is buying, selling and holding
IB and insiders is there trading to screw you
Definitely not for geenhorns!

Most call warrant now are overvalued if you follow my guidelines

Kong Hee Fatt Choy everybody

Posted by kcchongnz > 2017-01-27 11:55 | Report Abuse

Posted by lcwin > Jan 27, 2017 09:48 AM | Report Abuse
Simple General analysis for call warrants
Never pay more than 1 to 3% premium for every month of time value especially as it nears its expiry date.
If gearing is less than 2 don't bother
If not much trading volume don't bother unless you play small.
Warning!
Due to small amount of Warrants usually issued, IB and Buayas knows who is buying, selling and holding
IB and insiders is there trading to screw you
Definitely not for geenhorns!
Most call warrant now are overvalued if you follow my guidelines


Excellent advice.

Posted by stockmanmy > 2017-01-28 13:10 | Report Abuse

KC

You started this call warrant page and ended with excellent advise is to avoid.

Man is you ghost also you.

Tell you what.....if anybody wants to punt call warrant ., just punt the highest volume one.

Test your skill, results and feed backs very fast one.

Posted by stockmanmy > 2017-01-28 13:16 | Report Abuse

Volume high means there's lots of interest in the trade offs between premium, gearing and time and is the fair value between premium, gearing and time.

Up or down depends on the mother.

Posted by musangfoxking > 2017-01-28 13:16 | Report Abuse

learnt that buy call war when bullish and put war when bearish! now mkt bearish, y buy call?

Posted by stockmanmy > 2017-01-28 13:19 | Report Abuse

Very very rare instance of arbitrage and mispricings that can take advantage of.

So can save all the effort and ignore things like premium, gearing and time and just punt high volume ones.

Posted by stockmanmy > 2017-01-28 13:22 | Report Abuse

The only thing you need to know is that the big boys issue such stuffs.
For you to win, the big boys have to lose money.
God bless you.




Posted by musangfoxking > Jan 28, 2017 01:16 PM | Report Abuse

learnt that buy call war when bullish and put war when bearish! now mkt bearish, y buy call?

Posted by kcchongnz > 2017-01-28 21:21 | Report Abuse

Posted by stockmanmy > Jan 28, 2017 01:10 PM | Report Abuse
KC
You started this call warrant page and ended with excellent advise is to avoid.
Man is you ghost also you.


I started this thread with this remark,

"Warning: This post is about the “weapon of mass destruction”. It is written for sharing of knowledge, and not to advocate punting of call warrants, unless for just a little bit of fun with small money."

I went on to explain what one should look for if he punts on call warrants.

And you rightfully mentioned that I, "ended with excellent advise is to avoid.

So what do you mean by "Man is you ghost also you."?

Posted by kcchongnz > 2017-01-28 21:59 | Report Abuse

Posted by musangfoxking > Jan 28, 2017 01:16 PM | Report Abuse
learnt that buy call war when bullish and put war when bearish! now mkt bearish, y buy call?


Is the market bearish?

We punt the call warrant of a stock, not the overall market anyway.

If the stock is bearish, or at low price, it may be the best time to punt on its call warrant, as the call warrant, of which the value is derived from the mother share, will be low too. When mean reversion takes place, stock price will recover, and as well as the call warrants. And that is when you make money. Of course it depends on whether the share price recovers fast enough before the expiry date of the call warrants.