Many investors think that there is no doomsday round for warrants. In fact, the doomsday round of warrants may not be reset, but the nature is the same. The Shenzhen Development Warrants will expire on June 20. Investors holding Shenzhen Development Warrants should pay attention to investment risks.
Put warrants are zero, while warrants are one or two. For example, the share price of SDB is 21.20 yuan and the exercise price is 19 yuan, so the final return should be 2.2 yuan. At present, the SFC2 price of SDB is still above 6 yuan, and the fall space of 3.8 yuan is actually quite scary.
However, it is interesting to note that the final price of 2.2 yuan also changes. If SDB shares fall below 19 yuan a few days later, the price of SDB SFC2 will also return to zero, but if it rises above 25 yuan, the current 6 yuan will be worth it. Therefore, the doomsday round of warrants is more variable than put warrants.
Even if it comes to the last trading day, assuming that SDB's share price is still 21.2 yuan, SDB SFC2 will not stay at the position of 2.2 yuan, because there are still 5 days of exercise time after the last trading day, during which SDB's share price will fluctuate. Therefore, the final price of Shenzhen Development SFC2 will also fluctuate around its theoretical value, but generally it will fluctuate upward.
Why does it fluctuate upward? This is related to the definition of warrants. On the last trading day of SZSE SFC2, if SZSE SFC2 is held at a price of 2.2 yuan, then five days later, SZSE Development shares can be held at a cost of 21.2 yuan, or a claim of 2.2 yuan can be made for exit. The advantage over holding SDB shares is that if the share price rises or falls slightly, the 2.2 yuan investment can be kept through exercise; However, if SDB's share price plummets, it can only lose 2.2 yuan, which can avoid greater losses and is a very cost-effective investment.
Therefore, the closer the final reasonable value is to zero, the smaller the risk of misjudgment. Therefore, investors are more willing to pay a higher premium to hold it. If SDB's share price is 19 yuan on June 20, then the SFC2 price of SDB may be 0.5 yuan; If SDB is 20 yuan, SDB SFC2 may be 1.3 yuan; If SDB is at 21 yuan, SDB SFC2 may be at 2.1 yuan.
In the last round of SFC2, investors should pay attention to investment risks, and can also seize investment opportunities after the release of risks.
