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New PUT warrant and the possibilities, OSK Just introduce PUT warrants AxiataHA
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TSrosdi1
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Oct 2 2009, 03:22 PM, updated 17y ago
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The new PUT warrants Axiata-HA, GENM-HA and IOICORP-HA. open up new trading possibilities such as available in option trading. It can be used for Hedging the mother share or even start a straddle stragy. Any views
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zamans98
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Oct 3 2009, 12:03 AM
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I guess 99% of retail trader have no IDEA what the new PUT warrants are. Funny enough, upon listing, traders PUSH the price upwards, as usual they thought as normal Warrant.
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yktan83
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Oct 3 2009, 12:15 AM
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Getting Started

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QUOTE(zamans98 @ Oct 3 2009, 12:03 AM) I guess 99% of retail trader have no IDEA what the new PUT warrants are. Funny enough, upon listing, traders PUSH the price upwards, as usual they thought as normal Warrant.  i tot it is normal for the price of put warrants to go up since the market has been bearish in past few days
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TSrosdi1
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Oct 3 2009, 12:17 AM
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Why??? no views on this. Let me put here an example of hedging. I had bought AXIATA at RM2.50 and now the price is at $3.14. I could have sold it and make RM0.64 but I think the price will jump back to RM5.00 and I could had make a 100% profit of RM 2.50. We know that Sept 11, Gulf War or may be Iran war can happen without much warning.so I can protect my investment by hedgind with AXIATA-HA. I will buy 5 AXIATA-HA for 16 X 5 = RM0.80. If the price did go to RM 5.00 in 11 months I will be making a total of only RM 2.50 -0.80 = RM1.70 not a bad profit. If the price did drop to RM 1.70 in the next 11 months I will make a profit of RM 0.90 Not bad. How???
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yktan83
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Oct 3 2009, 12:40 AM
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Getting Started

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QUOTE(rosdi1 @ Oct 3 2009, 12:17 AM) Why??? no views on this. Let me put here an example of hedging. I had bought AXIATA at RM2.50 and now the price is at $3.14. I could have sold it and make RM0.64 but I think the price will jump back to RM5.00 and I could had make a 100% profit of RM 2.50. We know that Sept 11, Gulf War or may be Iran war can happen without much warning.so I can protect my investment by hedgind with AXIATA-HA. I will buy 5 AXIATA-HA for 16 X 5 = RM0.80. If the price did go to RM 5.00 in 11 months I will be making a total of only RM 2.50 -0.80 = RM1.70 not a bad profit. If the price did drop to RM 1.70 in the next 11 months I will make a profit of RM 0.90 Not bad. How??? but you would make net loss if price hovering from 2.60 to 3.20, breakeven at 3.30
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TSrosdi1
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Oct 3 2009, 12:56 AM
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That is the whole idea of hedging ...if you loss it will be small..not more than RM 0.46 in this case.
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yktan83
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Oct 3 2009, 01:00 AM
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Getting Started

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QUOTE(rosdi1 @ Oct 3 2009, 12:56 AM) That is the whole idea of hedging ...if you loss it will be small..not more than RM 0.46 in this case. icic, i got it, thanks mate
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zamans98
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Oct 3 2009, 01:13 AM
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QUOTE(rosdi1 @ Oct 3 2009, 12:17 AM) Why??? no views on this. Let me put here an example of hedging. I had bought AXIATA at RM2.50 and now the price is at $3.14. I could have sold it and make RM0.64 but I think the price will jump back to RM5.00 and I could had make a 100% profit of RM 2.50. We know that Sept 11, Gulf War or may be Iran war can happen without much warning.so I can protect my investment by hedgind with AXIATA-HA. I will buy 5 AXIATA-HA for 16 X 5 = RM0.80. If the price did go to RM 5.00 in 11 months I will be making a total of only RM 2.50 -0.80 = RM1.70 not a bad profit. If the price did drop to RM 1.70 in the next 11 months I will make a profit of RM 0.90 Not bad. How??? aha, OPTIONs style. I don't think it work in Malaysia market, totally not attractive in eyes of FF
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