On the day when the warrant expires, if the warrant is in the in price state, that is, the exercise price of the call warrant is lower than the normal stock price, or the exercise price of the put warrant is higher than the normal stock price, the warrant has the exercise value. Whether investors exercise or not, they should consider the exercise cost comprehensively.
Take WISCO warrant as an example. The subscription of WISCO is within the depth price, and the value of warrants is high. During the exercise period of WISCO warrants, that is, five trading days from November 16 to November 22, the maximum price of WISCO's regular shares was 3.96 yuan, and the minimum price was 3.26 yuan. Compared with the exercise price of 2.62 yuan subscribed by WISCO, it has exercise value. Calculated according to the final closing price of 0.497 yuan subscribed by WISCO on the 15th, the yield of exercise is between 21.6% and 27%. If the right is not exercised, the warrant will be cancelled, which is equal to giving up the intrinsic value of the warrant at least. The investors who follow the market situation actively participate in the exercise, but some investors have not exercised their rights for various reasons, which is a pity.
The next one is about to enter the exercise period Ansteel Call warrant is also a warrant in deep price. Yesterday, the closing prices of warrants and regular shares were 4.27 yuan and 7.87 yuan respectively. Since the exercise price of Ansteel subscription was 3.39 yuan, as long as the price of Ansteel regular shares did not fluctuate too much during the exercise period, it is more appropriate to choose to exercise.
Assuming that investors bought Ansteel at the lowest price of 4.103 yuan yesterday, when the stock price of Ansteel is higher than 7.493 yuan without transaction costs, the exercise has a theoretical positive return; When the stock price of Angang Steel is between 3.39 yuan and 7.493 yuan, for example, when the stock price of Angang Steel is 7 yuan, the intrinsic value of the warrant can be obtained by exercising. Considering the cost of purchasing the warrant, the loss is 0.493 yuan, but it is still better than non exercise. Not exercising the right means that the warrant has become waste paper, and the intrinsic value of the warrant has been lost by 3.61 yuan. When the stock price of Angang Steel is lower than 3.39 yuan, the exercise will only lead to greater losses, and it is wise to give up the exercise. To sum up, unless Angang's regular shares plummet, investors should exercise their rights in time during the exercise period. Although the exercise may not completely cover the cost of investment, it can at least obtain the intrinsic value of the warrants and reduce losses.
(GF, the primary dealer of warrants negotiable securities Liu Siling)
