GF Securities: warrant selection from the perspective of steel subscription performance

Primary dealer of warrants GF Securities Huo Yulin Guo Yong

On the first day of listing, China Life Insurance was enthusiastically pursued by the market, and led the financial sector to become stronger collectively. The warrant market was also unwilling to be outdone, and the call warrants were in full swing. Among them, the steel warrants once again attracted the attention of the market, and their performance was very eye-catching. The four steel share call warrants respectively ranked among the top four in the market transaction amount on that day. At present, steel stocks are sought after by the market, New steel vanadium and Baotou Steel 5.49% and 8% respectively, Masteel 、 Handan Steel The two stocks were also pulled to the limit, and finally closed at 10% and 9.83% respectively. Driven by the strong rise of positive stocks, Baotou Steel JTB1 、 Hangang JTB1 The three warrants of Masteel CWB1 formed a troika, rising 7.84%, 12.22% and 22.57% respectively, and Steel Vanadium GFC1 also rose 4.4%.

Through analysis, we can find that there is a certain reason for the soaring of steel share subscription certificates: Baotou Steel JTB1, Handan Steel JTB1, and Maanshan Steel CWB1 are all in the money warrants, and their effective leverage is 2.01, 2.04, and 2.07 times, respectively, more than twice, while the premium rate is as low as 2.94%, 1.14%, and 2.73%, of which Maanshan Steel CWB1 has a negative premium in the session, And the validity period of these three warrants is more than 2 months. This kind of in price warrants with low premium, high leverage and a certain time value can be said to be the favorite of warrant investors, because once the positive shares rise, under the amplification of effective leverage, this kind of warrants have much more room to rise than the positive shares.

From the active situation of steel warrants yesterday, investors can more deeply understand that investment warrants need to pay close attention to the trend of their positive shares: it is the best policy to have good expectations for positive shares, cooperate with the analysis of warrant indicators, and select their warrants on this basis. For example, if you are optimistic about steel stocks, you should choose the one with relatively large price elasticity in the plate; If the expectations for positive shares are roughly the same, the one with higher effective leverage (rather than nominal leverage) should be selected, taking into account such indicators as premium, extended volatility and trading volume.