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 New PUT warrant and the possibilities, OSK Just introduce PUT warrants AxiataHA

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TSrosdi1
post 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
zamans98
post Oct 3 2009, 12:03 AM

oquıɐɹ ǝɥ ɹǝo 'ǝɹǝɥǝɯos
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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. sad.gif


yktan83
post Oct 3 2009, 12:15 AM

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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. sad.gif
*
i tot it is normal for the price of put warrants to go up since the market has been bearish in past few days hmm.gif hmm.gif hmm.gif
TSrosdi1
post 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???
yktan83
post Oct 3 2009, 12:40 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???
*
but you would make net loss if price hovering from 2.60 to 3.20, breakeven at 3.30
TSrosdi1
post 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.
yktan83
post Oct 3 2009, 01:00 AM

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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 biggrin.gif
zamans98
post 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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