Ya all, if calls, unless there's big volume, dont go for CIMB. Gotten burnt before. Go for MacQ ones, price moves with index. Even with very little volume, I managed to sell at 3 cent profit today
Nibiru, it's propaganda only to push market lower. The fact is, there is no more steam for market direction after Fed being dovish on rate hikes. Dollar went weak and we should expect oil to hit 35 in the near future.
cashflow Nibiru, it's propaganda only to push market lower. The fact is, there is no more steam for market direction after Fed being dovish on rate hikes. Dollar went weak and we should expect oil to hit 35 in the near future.
Westgun, it is not easy to price in an event which cannot be forecasted due to its poor likelihood. No one predicted the hydrogen bomb test by North Korea, and no one could ever predict when a real war would happen. When it happens, then market will react on the news. At the moment, people are trying to speculate to drive the market the way they want. Until Obama announces the war, it's still a speculation.
CIMB don't want to bid higher, even when the gearing ratio and premium is in, this is how bank wants to con, so screw mathematics, its all about the bank
C12 always have volume since last time for CIMB. Like H25 for puts
If MacQ is see ratio, lower move faster. C28 move up 3 cents when index move 10 pts. C46, the new one, 2 cents. Though both no volume either buy or sell, it moved.
eagle, I was monitoring H25 also, it was 0.065 lowest and then picked up more than 100% profit within 10 days. Index barely went below 1600 exercise level but H25 made good fortune for syndicate and traders who swim along. C22 on the other hand had potential to do the same trend, provided the premium zone now, but CIMB wants us to believe the same could happen, but turn out the other way.
I have reported to Bursa, please do the same to report CIMB fraudelence. Part of the email content;
"This week, the KLCI index have progressed with dollar weakening and oil price stabilizing, and market is recovering with KLCI index recording at this moment 1648. The FBMKLCI-C22 exercise price is 1630, so the present underlying price is already premium for this warrant, but there is no movement on price, and worse it went south, kept declining. I have called CIMB warrant depart +6032261888, and spoke to a lady named Katrina. The bank representative gave some excuse regarding investors trying to exit despite the improvement in underlying price (email below). I understand this is a rare occasion, but it is not possible on every single day for the past 4 days when index is green. My bet, the warrant should have been priced about 0.09 level based on gearing and premium, but CIMB is taking advantage to flush traders out by scamming the warrant bid price, basically not allowing any chance of profit taking. It is very clear the bank refuses to trade higher and kept volume low to prevent warrant price correlating with underlying index."
cashflow this warrant is trading at a premium. You said it yourself. Do you know what a "premium" means?
The breakeven at RM0.06 is only when index is @ 1672 pts. [ ( 700 * 0.06 ) + 1630 ] = 1672.
It is overvalued at 6c. Don't get me wrong, but I don't think anyone is being cheated here. Try to understand how structured warrants work before blasting in such a manner
Shellhouse, there is no real reason for the warrant to dive to 0.055 when it was already in premium zone. Yes I agree the breakeven portion, but why would a warrant oversold when it is already above exercise level. Secondly, H25 case, it has not reached exercise level, but bankers and traders had it more than 100% profit in OTM zone. In contract, these are same ratio with caps between 1600 (H25), 1630 (C22), same expiration. If we see on weekly chart, C22 should have at least corrected above .09 in contract with December high when underlying is about the same.
Its a game of demand and supply. Try to think from the perspective of the bank.
The bank is not cheating anyone here, becoz they don't have an obligation to buy back at a higher price. Wait till maturity and you will receive your buy-in money together with the PROFITS in cash.
The price movements have nothing much to do with the bank. They are selling a product here. And traders like you get in and out speculating on future prices. That's explains the "correction"
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....
popcorn
1,625 posts
Posted by popcorn > 2016-01-27 21:48 | Report Abuse
I bought and sell at same price 0.55... CIMB warrant really unreliable~