The doomsday risk of WISCO warrants has emerged

Sichuan News - Chengdu Daily:

According to the prompt announcement of WISCO Group“ WISCO JTB1 ”Warrants and“ WISCO JTP1 ”Put warrants will be closed from November 16 (Thursday). Yesterday, the two warrants began to plummet, and the "doomsday round" risk performance was obvious. The "Wuhan Iron and Steel JTB1" warrant fell 28% yesterday, closing at 0.613 yuan, with a cumulative decline of 42% in the past two trading days; The "Wuhan Iron and Steel JTP1" put warrant fell even more. Yesterday, the warrant fell 62% to close at 0.057 yuan, with a cumulative decline of 98% in the past three trading days.

The exercise price of WISCO call warrants is 2.62 yuan, that is, every investor who holds a WISCO call warrant has the right to purchase one share at a price of 2.62 yuan from the 16th to the 22nd of this month Wuhan Iron & Steel Shares. Therefore, only when the positive share price does not fall below 2.62 yuan during the exercise period can the subscription of WISCO have the exercise value. Yesterday, the closing price of the positive share was 3.17 yuan, leaving 17% room for decline from the price.

For WISCO's put, the situation is just the opposite. The exercise price of WISCO put warrants is 2.83 yuan, which means that every investor who holds a WISCO put warrant has the right to sell a share of WISCO shares to WISCO Group at a price of 2.83 yuan from the 16th to 22nd of this month. Therefore, only when the regular shares of WISCO fell below 2.83 yuan during the exercise period can the put warrants have the exercise value, that is, the regular shares of WISCO should fall by 11% before they should exercise.

Analysts believe that the two WISCO warrants are now approaching their true values. The put warrants of WISCO are more risky, so it is recommended to sell them quickly to reduce losses; The warrant can be held and exercised at maturity. Our reporter Li Longjun