Baotou Steel Call Warrant (hereinafter referred to as Baotou Steel JTB1 , code 580002) and Baotou Steel Put Warrant (abbreviated as Baotou Steel JTP1 , code 580995) enters the exercise period from March 26, and March 30 is the expiration date, which is also the last exercise date. After expiration, the warrants will be automatically invalidated. The warrants of Baotou Steel have a total of five exercise days and cannot be traded during the exercise period.
Baotou Steel's warrants are settled in kind, that is, by means of securities payment, and warrant holders need to actively report for exercise. As of the last trading day of Baotou Steel's warrants, Baotou Steel JTB1 is in the price and has the exercise value. Therefore, the holder of Baotou Steel JTB1 should actively submit the exercise declaration on the exercise date to avoid losing the exercise income due to missed exercise. The number of exercise declarations is an integral multiple of one, and the exercise order is valid on the same day and can be revoked on the same day. When submitting exercise declaration to Baotou Steel JTB1, the exerciser shall ensure that there is cash in the account corresponding to the number of warrants to be exercised.
For example, the exercise price of Baotou Steel JTB1 is 1.94 yuan. To exercise 1000 shares of Baotou Steel JTB1, the account must have 1.94 × 1000=1940 yuan (plus some transfer fees and other related fees). The exerciser can perform the following exercise operations:
"Buy" (consigning direction) - "582002" (exercise code) - "1000" (quantity).
After the exercise operation is completed, investors will receive 1000 shares Baotou Steel (600010)。 The securities obtained from the exercise can only be traded in the secondary market on the next trading day, so the exercise income obtained by the exerciser is affected by the positive stock price fluctuation after the exercise.
After the last trading day, Baotou Steel JTP1 was out of price and had no exercise value, so investors should not apply for exercise of Baotou Steel JTP1 to avoid losses caused by exercise.
It is worth reminding investors that since Baotou Steel's warrants have five exercise days, and the Baotou Steel's shares purchased through exercise can be sold in the secondary market on the next trading day, Baotou Steel's JTB1 can exercise in a circular way to reduce the occupation of investors' exercise funds. For example, an investor holds 100000 shares of Baotou Steel JTB1. If the right is exercised at one time, the exercise fund of nearly 200000 yuan (1.94 × 100000=194000, plus some transfer fees) is required to obtain 100000 shares of Baotou Steel. For investors with insufficient cash, they can exercise some warrants before the non final exercise date, and sell the Baotou Steel shares obtained from the exercise the next day, so as to use the funds from the sale of Baotou Steel shares for re exercise. Assuming that during the exercise period, the price of Baotou Steel shares remains at the closing price of 5.7 yuan on March 23, the operation steps of the circular exercise on five exercise days are as follows:
On the first day, using RMB 1.94 million in cash, exercise 1000 Baotou Steel warrants and obtain 1000 Baotou Steel shares;
The next day, sell 1000 Baotou Steel shares obtained from the exercise of the last trading day, obtain 5700 cash, exercise again, exercise 0.293 million Baotou Steel JTB1, obtain 0.293 million Baotou Steel shares.
On the third day, the Company sold 29300 Baotou Steel shares obtained from the exercise on the previous trading day, obtained 166500 yuan in cash, and exercised again, with 85800 Baotou Steel JTB1 and 85800 Baotou Steel shares.
On the fourth day, sell the 85800 Baotou Steel shares obtained from the exercise of the last trading day, obtain 48760 yuan in cash, exercise again, exercise 251400 Baotou Steel warrants, and obtain the corresponding number of shares.
On the fifth day, sell 251400 Baotou Steel shares obtained from the exercise of the last trading day, obtain 1428500 yuan in cash, exercise again, exercise 736300 Baotou Steel warrants, and obtain the corresponding number of shares.
It can be calculated that if five exercise days are fully utilized and about 2000 yuan of cash is used, the number of exercisable Baotou Steel warrants is about 110000 (0.1+0.293+0.858+2.514+7.363=11.128). After the termination date of exercise, the investors still hold about 70000 shares of Baotou Steel. The total exercise of 110000 Baotou Steel warrants at one time would require about 220000 yuan. It can be seen that circular exercise can greatly improve the use efficiency of exercise funds.
However, investors should note that there are certain risks in the circular exercise: during the exercise period, if the stock price falls, the investors in the circular exercise will also be forced to sell shares, and the leverage effect of the exercise funds will be significantly reduced; Investors should not forget to operate on each exercise date; For investors who exercise by means of circular exercise, after the termination of exercise, the number of shares held by investors in Baotou Steel shall be less than the number of warrants previously held by investors in Baotou Steel;
It is suggested that investors should be very cautious in the leverage use of exercise funds, and should prepare sufficient cash to participate in the exercise. High leverage use of exercise funds is an expedient move for investors with insufficient cash. The use of circular exercise is too high to increase the leverage effect of exercise funds, which is easy to cause the situation that there is not enough cash for exercise on the termination date of exercise, and suffer unnecessary losses. ( citic securities )
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
