I've got a strong feeling this coming round may be a mini financial crisis.

Anythings possible, but i take this time to choose and buy quality household names.

trying to be unfriendly....

yay Maxis +5c

Examples ?

Which of those quality household names that you have in mind? Mind to share?

no use 1 la .. + - + - + - few cent .. amd keep stuck around 5.3-5.4... cant buy cant sell..

Tenaga, can you pls go down a little bit more -> 7.6x.

if you are long term holder, then you should be fine cause today's paper saying that Maxis could give 10c divvy this quarter, announcing on 19 Feb.

Wow, XDL, new low 0.46...

you have some?

I was thinking whether to queue at 0.44x - 0.45x. If got people set cut lost point there at 10% when they enter at 0.49-0.50, then match lo.

Hey guys, anybody here heard of a long straddle strategy before? Lets say a share has 2 call option and 2 put option.

Call option:
A : Exercise price 0.1
B : Exercise price 0.2

Put Option
A : Exercise price 0.1
B : Exercise price 0.2

If i were to enter a long straddle strategy, theres no difference if i enter at exercise price of 0.1 or 0.2 is it?

I will get it if it is in real sale.... sorry guys.... think I am talking rubbish...

wah really boh.. if the div p.a is more than 2.5% of the amount of share, i will keep it long term leh ...

higher exercise price makes your option warrant better return if it's differ from real price. But you are in -ve position at longer period than lower exercise price. Ie: high risk high return.
IMO, long straddle isn't very nice atm...please read carefully...in my opinion, trade at own risk.

BTW, I think this is not applicable to KLCI due to our low/none volume of put warrant.

This post has been edited by ExpZero: Feb 9 2010, 12:53 PM

Now banking sectors are getting hit like mad and CIMB maintains OUTPERFORM. How ridiculous.... :|

selling pressure is skyrocketing for pbb.
Whereas, I'm very skeptical about the warrant Q.

This post has been edited by ExpZero: Feb 9 2010, 01:01 PM

ok thanks a lot =) why is it that higher exercise price gives a better return for the warrant? Is it because the warrant trades at a lower price than the other?

I can't comment completely if just given exercise price, the ratio is very important too to judge the stability/risk vs return. Take and example like recent gens-c1 vs gens-c2, gens-c2 shoots up to 10% in a day while gens-c1 is just around 4-5% if my memory serve me right. Both of them are down now due to market sentiment.

One of the reason, yes. Lower price tend to have high volume or buyer.
The higher the exercise price -> the higher risk you will lose your money.
The higher the ratio -> the higher volatility of the warrant.

The standalone of these two ratio hardly tell you anything, but you need to combine both exercise price+ratio to get its risk vs return.

You must look at the exercise date as well, as the closer a warrant to the exercise date, the lower premium and volume it will be, because there are no more(less) buyer.