Last time I talked about that no one is good for a thousand days, and no flower is red for a hundred days. On Wednesday, the two cities witnessed a sharp fluctuation, and the blue chips finally faded, but another Chiba blossomed. Although it has experienced the continuous creation of huge amounts of securities companies for a period of time, the "doomsday round" of CMB put warrants, which is about to be exercised, rose nearly 300% in one day, creating another myth after the potash fertilizer put warrants rose more than 1000% in four days after 5.30.
Taking a comprehensive view of the five put warrants that continue to be traded at present, under the current bull market pattern, the possibility that their positive share price will fall back to the exercise price is almost zero, so it can be asserted that the value of the put warrants in the current market is almost zero.
How did the "crazy" explosion of put warrants come into being? In fact, before the CMB put warrants, the smaller plate of Valin put warrants has always been the focus of the capital, and on August 1, when the market plummeted, it also rose more than 21%. Everything has a principle of correlation, just as physics explains explosion: air expands rapidly in a limited space without effective release, which leads to explosion. The same is true of the "madness" of put warrants. Put warrants belong to the scarce resources of the two cities. In the context of still excess liquidity, many idle funds swarmed into the market when they could not find suitable varieties, taking the opportunity of changing their face in the big market, resulting in this "madness".
As for the sharp rise of CMB's put warrants, it is precisely because relevant reports say that Guodu negotiable securities And Orient Securities wrote off a total of 29 million shares two days before their sharp rise, which intensified the phenomenon of relative scarcity of resources. Therefore, in the context of a bull market, if the supply of put warrants fails to fully meet the demand of many idle funds, the "crazy" boom may continue by creating systems alone. Of course, ordinary investors should pay attention to the huge risks. In other words, the financial market where investment and speculation can coexist peacefully is the truly mature market.
Huang Jin
