Another reason is ppl taking profit or the warrant issuer keep selling as they expect klci index value will higher than break even price at expiry. ... they have all data...
H5 down mainly bcos nobody goreng and the premium is high. beside it is out of money , mean it is worth zero value at current index value. ... H5 is potential as the expiry date is longer. Recommendable to enter when index below 1600
Or another reason is because people are expecting technical rebound when KLSE hit 1600-1620 region. That is why u see Call warrant didn't drop much or didn't drop at all (C12) when KLSe drop 20++ points... Maybe some group of ppl anticipate a rebound
anything not reaching the exercise price is worthless... it go up bcos got ppl goreng it and some others follow... after some points, the shart dump all then bilis stuck at high price...
itulah... tak ada expert kat sini... your money in your pocket is your.. in stock market anytime will be other.. do your homework and dont trust anyone here... you only can take other comment as a idea before you conclude yourself... that why everyone PRESS comment b4 send out the message.
LoL, u guys do realize this warrant is kao kao overpriced rite... at this price ur anticipating the index to be below 1653 by end nov... anything above 1653 u lose money
the conversion ratio is 667:1 and strike price is 1800 for this put warrant, which means u have to buy 667 units of this warrant to have the option to sell it back to CIMB at 1800 at nov 30th( when the warrant expires).
667 X 0.225( current price) = $150.
Essentially ur paying 150 to have the option to sell it back to them at 1800, which brings the index to be 1800 - 150 = 1650 for u to break even. for example, if the index at the end of nov is 1700, ur paying 150 now, buying the index at 1700 at 30th nov and selling back to them at 1800. ur total outflow will be (-150 - 1700 + 1800) = -50. So unless the index is below 1650, u lose money.
Where as the KLCI- Nov futures now is 1700, if the index is below 1700 by end nov u make money...
this is how the bank make money, they issue over priced put warrants. they short the KLCI futures at a higher price and buy the warrant back from u at a lower price (strike price + warrant price factored in)
When the bull comes , people tend to forget the bear , and vice versa. Oil price dropped from USD 100 to USD 40, KLCI dropped from 1800 to 1500, But when oil price raise from USD 40 to USD 50, KLCI fly from 1500 to 1700. However what really harm our nation is an UNCLEAR COMPANY who owns 42 BIllions of DEBT , and a UNCLEAR RICH SAUDI GUY , who donated 700 millions USD. Please think carefully , HK , Singapore , Switzerland and USA also want to investigate this SUPER COMPANY , U THINK IT WILL BE CLEAN? Be fair , USA and Singapore might has some political intention , BUT HK's ICAC and Switzerland are well known in ANTI CORRUPTION.
What will happen to Bursa Index when ValueCap invest on November? IMHO, most of the people *believe* Index will stand above 1,700 point. If this statement is true, HG is worth for 14.5c and another concerned is the expired date just 1 month away to 30/11/2015. But market is unpredictable, please judge your own to invest.
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Posted by kimssiat > 2015-09-21 10:22 | Report Abuse
Up so slow ...