Posted by Mohammad Ahmad Din > 2017-03-19 16:34 | Report Abuse

can anyone please tell me what is this bursa c11 call warrant?

Posted by Jay > 2017-03-20 10:49 | Report Abuse

this is a warrant issued by investment bank (unlike company warrants). similar to company warrants, it has an exercise price and exercise ratio, from which you compare against the market price of bursa, you can estimate the fair value of this warrant.

but unlike company warrants, expiry date for call warrant are much shorter (rarely > 1yr) and liquidity may be lower (the orders in large round numbers on bid/ask usually are market-makers)

it is a much riskier trade compared to company warrants but often offer more leverage. so as you can see, markets are bullish on Bursa, mother move a bit, C11 return is so much higher, but this also happens when it goes the other way round.

my advice is, don't touch call warrants until you fully understand it and is comfortable with the risk reward

Posted by Jay > 2017-03-20 11:17 | Report Abuse

compared to C10 which is about to expire soon, C11 would provide a much higher leverage exposure to Bursa with longer epxiry. premium is actually quite reasonable at 2%.

Bursa 1Q results will be fantastic come May since the trading volume and value is so high thus far