Yesterday, the warrant sector continued to walk out of the overall adjustment of the market. On the same day, only one of the five grain put warrants was red, including Potash fertilizer JTP1 The decline was as high as 58.79%, becoming the leading loser in the warrant sector of the day CMB CMP1 The decline of the day was as high as 44.86%. The risk of warrants is fully revealed again.
Since the end of May, driven by the short-term surge of Potash JTP1, there has been a round of crazy speculation in the warrant market, especially for the put warrants with zero intrinsic value. Potash JTP1 soared from 0.902 yuan to 8.05 yuan in just four trading days, with a relative increase of 792%! After the crazy speculation, Potash JTP1 entered a process of rapid decline again. The warrant fell by more than 70% in three trading days this week. In order to curb warrant speculation, Shenzhen Stock Exchange has implemented new risk control measures for Potash JTP1 and focused on monitoring. This put warrant will be terminated from next Monday, and is now worthless. However, as of yesterday's closing, the warrant was still 1.36 yuan, and the downward pressure of its value returning to zero was increasing, so the transaction risk was very huge. Put warrants in the form of waste paper will give speculators a profound lesson.
Although the risk of warrants is huge, there are still investors who seek refuge from fire and play a dangerous game of foolishness. Since the end of May, speculation in the warrant market has reached a crazy level. Speculative funds believe that there seems to be no need for warrants except funds. Due to the low market value of warrants, very small funds can be played. The characteristics of T+0 trading of warrants also provide an excellent place for speculators who like ultra short term. It is precisely because of the above characteristics that warrant has become a speculation tool in the hands of the main players of hot money, and the price is far from its theoretical value. As a result, there is a strange phenomenon that the positive shares and put warrants rise at the same time in the market.
Because the warrant has a fatal weakness, that is, its deposit and renewal period is certain. With the shortening of the duration, the bursting of the warrant bubble will inevitably come. In particular, the put warrants whose intrinsic value is zero will inevitably return to zero as the exercise time approaches. The early Vanke put warrants and other pre delisting zeroing movements have explained everything. This shows that although the short-term price of warrants can be manipulated, with the shortening of the residual maturity, the return of their prices to the intrinsic value cannot be changed. Therefore, once again remind investors, do not take a chance to fool, or you will have nothing to lose.
Jiangnan negotiable securities Cheng Rongqing
