Icon8888 Gossips About Stocks

(Icon) Air Asia (7) - Which Call Warrants Will Provide You With Best Flight Experience ?

Icon8888
Publish date: Tue, 10 May 2016, 04:51 PM
Icon8888
0 404
I follow the smell of money.

Of all the Air Asia Call Warrants listed on Bursa, which one is the most attractive ?

 

 

With trading volume of more than 4.5 mil shares in one day, it looked like C31 is the most popular. It will expire in another 98 days. However, it is almost in the money. Due to the low conversion premium of 4%, your risk of investing in this instrument is almost same as investing in mother shares IF you are prepared to "exercise" the Warrants by buying mother shares as continuing exposure upon Warrants expiry.

In my opinion, C27 and C28 are even better as their conversion premium of 2.91% and 4.61% respectively are more or less the same as C31 but their lifespan of 172 days is almost double that of C31.

C30 is unique because it has almost one year's lifespan (266 days). However, its conversion premium is 7.8%, higher than most other Warrants.

Different people have different risk appetite. I think all of them are reasonably good and worth a punt, except for C33 and C34, which has high conversion premium of more than 15%.

 

Related Stocks
Market Buzz
Discussions
6 people like this. Showing 12 of 12 comments

Kasseylim

Please report to SC. Market manipulation in progress here

2016-05-10 17:30

performer

Lan la manipulation

2016-05-10 17:39

MillionInMaking

Call or put warrants are for experienced investors who have done all round calculation and know how to reasonably contain their risks.

2016-05-10 19:10

MillionInMaking

Please report all newspapers also.

2016-05-10 19:10

Investo

I read N learn alot. Thx Icon.

2016-05-11 07:51

i3gambler

The value of a option/warrant depends on:
1) Higher gear higher fair value.
2) Lower dividend yield higher fair value.
3) Higher mother share volatility higher fair value.
4) Higher mother share ROI higher fair value.
5) Longer CW life higher fair value.

Therefore you need option calculator, otherwise dont touch.

2016-05-11 09:32

stockmanmy

and if you are very bullish you buy the one with the highest gearing.

2016-05-11 10:03

lcwin

Take it from me .
Best option C31
2nd best c28 but too low volume to trade
Trade with eye on screen as volitility is huge
Yes Kong hee fatt choi

2016-05-11 10:44

moneySIFU

Take it seriously, it is 100% TRUE => Trade with eye on screen as volatility is huge.

Calculate yourself to make yourself fully understood the risk & reward, or you will die die like dead ant, become dust.

2016-05-11 22:44

moneySIFU

When market is bullish, you will be rewarded kaw kaw.

When market turn south, you better get ready to bang the floor (jump out from the free falling boat)

2016-05-11 22:47

moneySIFU

Mr Icon has big stomach, can't follow him go all the way.

2016-05-11 22:50

pandakun99

dont follow moneySIFU, lousy and ridiuculous comment all time, what a lalat

2016-05-16 08:23

Post a Comment