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Put or Call Warrant : Is it worth investing????
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Pension
Elite |
13-Sep-2007 02:29
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cwquah, thank for your information. |
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CWQuah
Master |
12-Sep-2007 23:26
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Hi Pension, I myself don't really try the CDL call warrants (only a bit of STI warrants for hedging against sentiments), so can't really advise on CDL warrants. But if you look at the typical volumes traded for most warrants, most of them are pretty illiquid i.e. very hard to find buyers or sellers at the price you want. It's also why the price movements between days can be very volatile. Typically the more liquid ones enjoy perhaps a few thousand lots traded. For the illiquid ones, it can be that volume actually drops to zero the whole day, for a few days! This means that one can get stuck with call warrants bought in at a certain prices for quite a few days before the opportunity to sell (i.e. mother share moves up significantly) exists. By then even if you sell, there would already be losses due to time delay depreciation so any eventual gain from closing the warrant position is quite minimal. I suggest going through this website on warrants for more details. http://sg.warrants.com/singapore/home4/basic/handbook01.html |
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august
Senior |
12-Sep-2007 22:46
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Singapore's put and call DOES NOT follow the underlying shares. You pay at your own risk ($$$$). Better to buy the mother shares even if it cost more. Long term, you gain. Earning money from put/call is actually pure luck.. |
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Pension
Elite |
12-Sep-2007 22:17
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cwquah, which warrant is good to invest?? any comment on the cdl call warrant? |
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CWQuah
Master |
12-Sep-2007 21:42
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Purely for very very short term punts. Holding them incurs depreciation due to time decay. They can expire worthless. Only real use is short-term hedging against certain positions. |
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Pension
Elite |
12-Sep-2007 21:10
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Some loss million and some make million,what your view and comment??? |
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