How to prepare warrant investment
Miss Zhang:
My friends around me said that the market index is very high now, and investment risks are also accumulating. I tried to invest in warrants. What should I pay attention to when investing in warrants?
Hebei Laodu
Old Du Readers:
Warrant investment is different from stock investment. The following points should be noted:
(1) You should avoid investing all your capital in warrants.
(2) Pay attention to the timeliness risk of warrants.
(3) Investment warrants should strictly follow the stop loss principle. Once they fall below the stop loss level, they should exit in a timely manner. They should not wait for unwinding or try to cover positions at a low level to reduce costs.
(4) When investing in warrants, one should not covet temporary bargains.
(5) Do not invest in warrants if you cannot always pay attention to changes in the market.
(6) And shares Investment is different in nature. It is not suitable for "covering".
The above experience is for your reference.
Huachuang Securities Changhai Road Business Department
Common warrant investment strategies
Miss Zhang:
What are the common skills and strategies in warrant investment?
Ling Yi
Ling Yi Readers:
(1) Whether the underlying securities continue to rise or fall, it is the best time to invest in warrants. As long as the direction is correct, investors can obtain high returns through the high leverage ratio of warrants.
(2) If the market fluctuates, the difficulty of warrant investment will increase correspondingly, but investors can still judge the high and low levels of the underlying securities and make profits by selling high and absorbing low.
(3) When investors judge that the underlying securities will rise or fall sharply, they can respectively purchase call warrants or put warrants beyond the deep price. However, if the increase or decrease of the underlying securities is less than expected, the corresponding warrants may have no exercise value when they expire.
(4) When the short-term increase of the securities held by investors has been large, investors can sell the securities for profit and then purchase the warrant of the corresponding securities with 10% - 20% of the capital, which can not only cash out part of the capital for other purposes, but also enjoy the benefits brought by the continuous increase of the underlying securities through the warrants, and also pre lock the maximum risk of loss.
Huachuang Securities Changhai Road Business Department
Exercise of Warrants
Miss Zhang:
Hello! I am a loyal reader of "Stockholders School". Recently, I found some information about warrants on the Internet, but I still don't know much about the exercise of warrants. I have several problems, please help solve them.
Taking CMB CMP1 as an example, its exercise price is 5.45 yuan. Assuming that I bought 1000 warrants at 0.2 yuan, the share price of CMB at that time was 30 yuan, and I chose to exercise, the loss after exercise would be - 0.2 * 1000-30 * 1000+5.45 * 1000=- 24750 (- means pay,+means get)
First, is this calculation correct? Because of the heavy losses, there is no need to exercise, right?
Second, CMB CMP1 exercises. The procedure is that I first pay 30000 yuan to buy CMB shares, then sell them to the warrant issuer at the exercise price of 5.45, and get 5450 yuan. Is that right? For Guodian JTB1, the procedure is that I pay 4770 yuan to buy Guodian Power If you sell the shares in the secondary market for 16.43 yuan, you will get 16430 yuan. Is that correct?
Faithful reader Xing Kai
Faithful reader Xing Kai:
For the first question, your calculation is correct and there is no need to exercise.
As for the second question, your understanding is correct. For example, CMB CMP1 generally does not choose to exercise because of the large difference between the exercise price and the stock price at that time
Huachuang Securities Changhai Road Business Department
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