my opinion, this put warant will follow the movement of KLCI but the premium will be small compare to before... do u think BURSA to stupid allow something that can burn people... some more, y d committee been setup to monitor UMA... to monitor market manipulation right...
I oredi earned many rounds for different Hs. of course we must know what we are doing and take calculated risk. It is all back to how confidence we are toward CI to direction of bullish and bearish :)
If not confidence with CIMB Hs, dont go in. Still so many Hs to choose from. Put warrant is in pocket money, make sure get in the "reasonable" price then will be safe.
Haha...i just learnt how the issuers operate these Call Warrants.....once you know then can avoid being trapped...besides, try not to go in big position...unless your underlying shares / CI really outperform....
Sell at high premium 99 ...after the distribution is done then issue new ones to sell at high premium again...then they play around with the premium...that's why HB n HG can hardly move in tandem with KLCI today..
I think they are more than happy to sell new HB at RM0.30 (where they can makan you 50 points easily), meanwhile they can hedge by selling KLCI futures...close one eye also can make good money
just be smart la, now cimb issue warrant no ppl will buy to help him pay the 1mdb loss, so now they issue here to grab money, now buying is equal to buy 1mdb...
CIMB is confirmed losing money on HB and HG when expired. it is not possible both will reach 1880 and 1800 respectively by due date. They need to issue new put to cover the loss - only way out. Let say by November KLCI reached 1600. it is (1800-1600) /667 = 0.2998. CIMB sure lose big. Even those chased high and bought at 0.31 also suffer minor loss only, no big deal. 1600 is very possible by Nov looking at the current global sentiment.
yes.... they are too smart. Go check HK issued by CIMB today. the conversion ratio is 1735 ONLY !! On top of millions of HB and HG they issued today, they issue 50 millions more new PUT - HK same day. why? They must recover the loss from first batch of HB and HG.
actually this is very unfair one, but when you gambling with casino, it's never fair, no matter what casino will be the winner, so dun so stupid to being trapped
yup in a way yes. Now you see HK so dirt cheap 12 cents , many retailers will go in to chase like crazy when market dropped another 30, 50 points soon then will up till say 0.30 or more, in between CIMB distribute to retailers at high price again and again. They already recover all loss and even start earning lucrative profit. Even by due date January 2016, KLCI reach 1600. (1735-1600)/666 = 0.20, they also no need worry as the gap getting so small. They learned from HB and HG, no way they let it repeat second time !!
Do not use H as attack, but use it to defense our long profiles. This should be the correct mindset. if really wanna use it as attack when market really bearish, do not all in but portion only. Put suppose to defense /hedge and not the other way around.
Why you are sure they lost money in HB n HD? They should have hedged so thru shorting KLCI futures earlier (and make money from it)...I dont think they will be in open position...U think they dont hedge or dont know how to hedge?
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....
murali
5,723 posts
Posted by murali > 2015-01-16 09:49 | Report Abuse
Aiyo, Icon8888, when people give frank opinion to you you said people is grumpy....so sad