If there is no banker stationed in the creatable put warrants, no one will believe it. The 10 times increase and 800% turnover rate in a single day are by no means created by a group of rogue speculators. It has become the consensus of warrant participants that one or more dealers organize the market.
So, who can create put warrants and who has directed the spectacular market? From the public information, there is no clue, but some insiders said that except for innovative securities companies that can create warrants, it seems that no one has the ability to create put warrants.
The traditional dealers mainly include the following types: securities funds, private funds, trust and investment company funds and other forces. However, if private funds or trust and investment companies can create put warrants, it will be useless to have more funds when facing unlimited creation warrants. Because the final value of the put warrant is bound to return to zero, if it is held for a long time, it can only be expired. Therefore, private funds and trust and investment companies are unable to create put warrants.
Is it possible for non innovative securities companies to create put warrants in their shops? I don't think it is possible. Just imagine that a securities firm absorbs enough chips at a low level, and then starts to push up the price. Then it hears that innovative securities firms have created their own warrants. At this time, it must be neither advance nor retreat. When I entered, I watched the creatable put warrants that were several times as many as my own holdings sold at high prices. When I retreated, my previous efforts were wasted. I had no choice but not to vomit blood.
Although the fund has a lot of money, it cannot buy option assets according to regulations. Moreover, fund managers are role models of value investment, and they will never touch the put warrants like waste paper. Therefore, funds will not touch the put warrants.
At last, there are only innovative securities companies. In my opinion, the rise and fall of creatable put warrants just cater to the interests of innovative securities companies. They can sell as many as they want; You can buy as much as you want when you fall down. If you buy enough, you can write it off, and you don't have to worry about future shipments. If all the creatable put warrants are well behaved, the creation qualification of innovative securities firms will be worthless. Therefore, although it can not be said that innovative securities companies can create put warrants in their business, the ups and downs of the creatable put warrants have indeed brought huge benefits to innovative securities companies. If innovative securities firms can create put warrants without setting up shop, perhaps other funds will be even more afraid to set up shop.
Zhou Kejing
