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Options & Futures

The performance of the stock market in Hong Kong is considered bad this year with the Hang Seng Index currently dropping about 30% from the peak achieved last year.  This has affected the turnover of the market as well as the volume on warrants ...
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When the stock market was falling the way it did the past few weeks and most of the call warrants becoming out-of-money, investors would have been very interested in products that allow them to short equities. Apart from the index futures products ...
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China internet giant Tencent Holdings Ltd (0700.HK) share price plunged from above HK$150 to HK$127.40 after its major shareholder Ma Huateng disclosed that he had reduced his stake in Tencent by 5 million shares at $102.70.   His disposal of ...
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Glossary

 

 

American Style – Warrant can be exercised any time prior to expiry.

 

At the Money – If the share price is at a level equal to warrant exercise price, the warrant is at the money.

 

Capital Fulcrum Point - The annual compounded percentage growth rate required from the underlying share price for the investor to do equally well on his investment in the associated warrant on expiry.

 

Delta - The magnitude of the warrants price movement in theory in response to movement in underlying share price.

 

Effective Gearing - A more accurate measure of a warrant’s gearing. It adjusts for the delta of the warrant.

 

European Style – Exercise of warrant only possible at the expiry.

 

Exercise Price - The predetermined price that the warrant holder is entitled to purchase or sell the underlying security

 

Exercise Ratio – The number of warrants required to exercise into one share of the underlying security

 

Expiry Date - The date after which the warrant holder loses the rights to purchase or sell the underlying security.

 

Gamma – A measure of the rate of change of delta

 

Gearing – A measure how many times (units) of warrants one can purchase with an investment in the underlying security or mother share. It is a ratio of mother share price over warrant price

 

Historical Volatility - A figure derived from the price action of the underlying security using statistical calculation.

 

Implied Volatility - A figure derived from warrants pricing formula when we input the current warrant price and work backwards to derive the (implied) volatility figure. It represents current market expectations of the future volatility of the underlying security.

 

In the money - If the share price is above the warrant’s exercise price, the warrant is in the money and has intrinsic value.

 

Intrinsic Value – The difference between the underlying share price and the warrant’s exercise price.

 

Out of the money - If the underlying share price is below the warrant’s exercise price, the warrant is out of the money and has no intrinsic value. It only has time value.

 

Premium - measures how much more (in percentage term) an investor is willing to pay for in excess of the market value of the underlying security today in order to gain an opportunity to enjoy greater return by buying the warrant.

 

Rho – The sensitivity of the warrant price in response to a change in interest rate

 

Time Value It is the difference between the warrant price and its intrinsic value.

 

Theta – The sensitivity of warrant price to the passage of time.

 

Vega – The sensitivity of warrant price to a change in volatility.

 

Analysis

Warrant Ranking by Premium (7 Aug 2016)

The following is the list of Warrant Ranking by Premium

Warrant Ranking 7 Aug 2016 by Premium

MALAYSIA LOAN STOCK ANALYSIS 27 MAY 2015

The following is a list of loan stock listed on Bursa Malaysia as at (date).

Malaysia Loan Stock Analysis 270515

Change in Shareholdings (1/5/2015 - 31/5/2015)

The following is a list of change in shareholdings as at (date).

May 2015 (1 May 2015 - 31 May 2015)

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