Recently, the adjustment of Shanghai and Shenzhen stock markets has been further intensified. On Wednesday, the two stock markets suffered a sharp decline. Investors who had built positions in the earlier stage have shipped out, and the market has seen panic selling. Most large cap stocks fell by more than 5%.
In volatile market conditions, investment warrants are more flexible and operable than direct purchase of equity. In fact, we can further integrate the long-term and short-term strategies to deal with the current volatile market situation. First, we should choose the corresponding warrants on the premise of bullish positive shares. Once the positive shares rise, the return of warrants will greatly exceed the positive shares under the amplification of effective leverage; Second, once the market is found to deviate from its own judgment, the trading mechanism of warrant T+0 allows investors to make profits or stop losses in time.
Guodian JTB1 and Changdian CWB1 Is the best example. On Wednesday and Thursday, the market was immediately lowered, Yangtze Power It once rose against the market, and its warrants also rose sharply under the impetus of the positive shares. However, due to the sharp decline of the market, Yangtze Power finally closed down 5.36%. If an investor who is used to chasing the rising price builds a position at the opening, he or she will be locked up on the day after the position is built, and will suffer a floating loss of more than 5%. The investor is faced with the dilemma of cut position or patience. However, if investors choose Changdian CWB1, the situation is quite different. On that day, in the process of the positive stock rally, Changdian CWB1 climbed all the way, with the maximum increase exceeding 6.5% in the morning, and then began to plunge sharply in the afternoon. At this time, investors can still ship and leave immediately if they see the situation is wrong. If the previously set profit stop point is lower than 6.5%, investors still have profit income. From the performance of CWB1 of Changdian on that day, many investors are already using this strategy to operate. Therefore, compared with the regular shares, the option warrants can give investors more room to operate.
The key to the above strategy is that, although the market fluctuates greatly, the medium and long term companies are optimistic about the positive shares, select the corresponding low premium and high leverage warrants, and repeatedly operate in combination with the short-term trading skills in the day, which can achieve unexpected gains. On the other hand, we are optimistic about positive stocks. Even if we do not do short-term operations, such varieties with low premium and high leverage and a certain time value are safe in the long run. Therefore, it can be said to be a strategy of advancing, attacking, retreating and defending.
Of course, this strategy requires relatively high trading experience and skills of investors, and is suitable for more professional investors. In the face of sharp fluctuations in the market, investors should pay attention to combining their own risk tolerance when conducting warrant trading, and strictly set the stop loss point and stop gain point. (GF, the primary dealer of warrants negotiable securities Huo Yulin)
