Introduction

There are two types of structured warrants, i.e. call warrants and put warrants.

(a) If a market is on uptrend, then call warrants will rise and put warrants will fall.

(b) If a market is on downtrend, then put warrants will rise and call warrants will fall.

Structured Warrants Offered in KLSE

KLSE offered trading in FBMKLCI and HSI call warrants and put warrants.

Intrinsic Value Calculation

KLSE

Call warrant = (FKLI – Exercise price)/ratio

[Note: FKLI (FBMKLCI futures) is used in calculation and not KLCI]

Put warrant = (Exercise price – FKLI)/ratio

HSI

Call warrant = (HSI futures – Exercise price)/ratio

Put warrant = (Exercise price – HSI futures)/ratio

FKLI Call Warrants Offered in KLSE

FKLI Put Warrants Offered in KLSE

Hang Seng Index Futures Call Warrants Offered in KLSE

Hang Seng Index Futures Put Warrants Offered in KLSE

Live FKLI and HSI Futures

Macquarie Investment Bank shows the live FKLI and HSI Futures in their warrants website, as follows:

https://www.malaysiawarrants.com.my/home?gclid=EAIaIQobChMIxZej3Jf61wIVAiUrCh0IdAsrEAAYASAAEgJ_b_D_BwE

Information on Exercise Price, Ratio and Expired Date

The above information can be obtained from i3investor forum.

Trading time

(a) FKLI structured warrants

First Session: 9.00 am to 12.28 pm

Second Session: 2.30 pm to 4.42 pm

(b) HSI Futures structure warrants

First session 9.15 am to 11.58 am

Second session: 2.30 pm to 4.28 pm

[Note: HSI futures will continue to trade from 5.15 pm until 1.00 a.m. although our KLSE has closed at 5.00 pm]

Advantage of HSI futures structured warrants compared to FKLI warrants.

(a) HSI futures structured warrants have market makers (such that the buy queue and sell queue will be adjusted accordingly by the investment bank, i.e. Macquarie) but FKLI futures are all controlled by traders alone.

(b) Volume traded in HSI futures structured warrants is very much higher than that of FKLI.

Conclusion

(a) If you think that the global markets will continue to rise further, then buy call warrants.

(b) If you think that the global markets are heading for a meltdown/crash/serious correction, then buy put warrants.

(c) The risk in trading structured warrants is extremely high. [Please don’t ever sailing]

(d) The cheapest HSI call warrants is HSI-C1X and it is already in money already because HSI Futures has already crossed 32,000 points.

Strong Hang Seng Index Futures:

https://www.investing.com/indices/hong-kong-40-futures-advanced-chart