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SPC
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shplayer
Elite |
24-Feb-2007 09:36
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geojam, Think this is how it works on European Call Warr. Say Strike @ 4.50. Ratio 1Share : 4 warr You bought 4000 warr @ 20 cts ...cost $800.00 Upon closing price of share on expiry date is 4.70. Difference of closing price and strike is 20cts....Warrant issuer will pay you 20 cts for every 4 warrants (ratio)....i.e 1000 x 20cts = $200.00. Your loss is $800 - $200 = $600 If closing price upon expiry is less than 4.50...you get nothing. Your loss is $800 Because of the gearing of the warrant, say you bought at 5cts, then the share goes up to $5.00 before expiry. Technically, the value of the warrant is (5.00 - 4.50)/4 = 12.5 cts. If the mkt feels the mother share has more upward potential, buyers may offer a premium..say 15 cts. Conversely, if mkt feels the trend is down.....mkt price of warr may be 10 cts. So, if you sell your warrant in the open mkt, you stand to profit. So, in giantlow's case, he bought at 5cts. Technically, he will break even when SPC is 4.70..... (4.70 - 4.50)/4 = 5 cts ....assuming warrant mkt does not offer premium or discount. |
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Livermore
Master |
24-Feb-2007 08:57
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Patience shall be rewarded.Be patient......... | ||||
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geojam
Member |
24-Feb-2007 08:56
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Giantlow My knowledge of warrant is poor. So when u buy the warrant,say 20 cents,and then they say the strike px is $4.50.That is all u need to do?Sit and wait until expiry date comes? And on day of expiry,if share px like u said above S$4.5 they pay u cash otherwise money gone? Simple as that? Giantlow,u strke me as one from ACS?am i rite? Cheers |
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Livermore
Master |
24-Feb-2007 02:58
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Finally my warants are coming back. Hope it can cross 20c | ||||
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giantlow
Master |
24-Feb-2007 01:42
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the "proper" way of shorting would be to use a Security Borrowing & Lending Account (SBL a/c) or Contract for Difference Account (CFD a/c) |
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KiLrOy
Master |
23-Feb-2007 23:37
Yells: "I buy only what I can see." |
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[15:29 US TECHS: Commodities Outlook; Gold and Oil] Boston, February 23. [Gold] is providing bulls what they need, having set a large range ($31) outside week higher and pushed side concerns arising from Tuesday"s break. Having exceeded front-month highs just below $680 from mid-July 2006, upside objectives start at $700 on weekly and monthly charts and rise from there. Higher highs yet today will lead to firmer projections for next week and March. Intraday support starts at $687 Apr, then $683-84. [Oil] has finally set new highs for the month. A trend Intensity uptick is not out of the question on more substantial gains. Apr futures have tapped against weekly resistance at today"s highs, and a monthly close past $62.37 Apr will send long-bearish monthly trends to neutral. If prices can"t rally that far, the hurdle drops sharply in March to about $60.75 to end that key time frame"s bearish outlook. On continuous futures, oil reached its 200-day moving average today for the first time since last December 20. This is mentioned, as that test marked the start of an enormous down leg which has been mostly retraced since mid-January. Elliott wave counts have not ruled out the advance from January"s lows as being a 4th wave correction that could lift as high as $63.50-64.00 before heading back down. Joel.Marver@thomson.com |
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idesa168
Elite |
23-Feb-2007 23:07
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thank you, thank you. All the big brothers giving xiao di advises. Now it makes sense to me after shplayer explains about the delivery of shares, T+3. Clear now! This will poise dificulties to the shortist, and yet there are still many shortist around. |
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iPunter
Supreme |
23-Feb-2007 22:21
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If you trade rubber, cotton or Asuki Beans, you can sell a whole plantation or farm even if you don't own anything.
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giantlow
Master |
23-Feb-2007 21:19
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yup yup. shplayer is rite. simple logic - u cannot sell what u dun own |
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shplayer
Elite |
23-Feb-2007 20:06
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idesa168, Think it got to do with delivery of shares. Say you sold today (Fri)....then the byer will expect to receive his shares by T+3....i.e. on Wednesday. But you buy back on Mon, of which share you will only have in your possession on T+3 from Mon...i.e. Thur. So, on Wed, you don't have any shares to deliver to your buyer....that will cause a problem. |
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idesa168
Elite |
23-Feb-2007 19:31
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Thanks iPunter But I still don't understand why we cannot short for 2 days. Say shorted 10 lots of SPC at $4.54 but mkt close at $4.56 today. Then if mkt opens the next day at $4.44, I buy in. This way is only fair for shortist, T+3. |
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iPunter
Supreme |
23-Feb-2007 18:55
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If you short-sell in the morning or anytime during the day, you must buy back all the same shares by the end of the day before market closes. If you don't do that, your broker is not responsible for your actions. Then on T4, but not before, SGX will do a forced buy-in on your behalf at 2 bids above the asking. To do proper shorting, you can take advantage of POEMS great CFD service. |
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iPunter
Supreme |
23-Feb-2007 18:48
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If one has not shorted, then how will one becopme a better trader?... :) |
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idesa168
Elite |
23-Feb-2007 18:46
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Yes Nicky, that's the spirit. Loose today, there is next trading session to battle. Hope your damage today is not significant. Leave some bullets for the next session. Just curious, about shorting ( I have not personally tried before), you cannot bring your short to the next trading day? I do believe if we contra the trade, we have 3 days to settle the deal. Didn't that principle apply to shorting? |
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nickyng
Supreme |
23-Feb-2007 17:15
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lan lan...covered back at 4.54 !! lost this battle :P I will be back !! hee... |
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iPunter
Supreme |
23-Feb-2007 16:46
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boohhow65... you are on the right track... The chart indicates the trend had definitely reversed long ago. Any technician worth his/her salt will, based on his tool (the chart), dare tell you straight that and without reservation, (and of course with humility) that SPC is no longer on a downtrend. |
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KiLrOy
Master |
23-Feb-2007 16:00
Yells: "I buy only what I can see." |
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Its a good start but need to overcome previous 4.6 physiological support/resistance. I still have mine last 4.4 vested lots. The same bird that told me it will move has also said that next week move will be spiking. :) Again, take this a side noise. |
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chinkiasu
Master |
23-Feb-2007 15:00
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I think this is the most relevant news I heard so far for this stock
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shplayer
Elite |
23-Feb-2007 14:33
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giantlw, Oh, I see...in this case, you need 4.70 to break even then. This dosen't give you much room to manoeuvre. The issuer can manipulate the price on expiry so that they don't have to pay you. Now, I recall why I did not want to get involved with this type of warrant. Its a 'heads you lose, tails I win 'game for the warrant issuers. |
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giantlow
Master |
23-Feb-2007 14:23
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damn shortist | ||||
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