Ximon Lim, C74 has the lowest exercise price, that's a good start.
Then, you learn (from Jim Tan) that you need 2.6053 units of C74 plus the exercise price to be equivalent to one mother share.
So, 2.6053 x 0.305 + 2.1711.
Then you notice C66 and C67 has the lowest break even point, C74 is the third lowest.
Then you need to calculate the time value of each warrant(Simple equations will do). For example, 1.5c per month.
Then, consider also a lower priced warrant can make more money in percentage term for you compare to a more expensive one. For example, if you buy a 8c warrant, then when it rises to 15c, you may swap it to another cheaper warrant.
Then, note that Peter Lynch said only buy warrants that is in-the-money. That is your insurance policy! When the warrant expires, fly/drive to bukit bintang to collect your fat pay check.
Most warrants traded in premium, in very rare occasion it offers discount (what you called "undervalued"). For example, the mother share price is rising too fast or traders sell the warrant to you at a discount because they do not understand how to get the fat pay cheque (maybe their kampung no airasia yet).
One of the greatest challenge in doing well in warrant is able to read tiny letters. The Edge provides detail updates on warrants every week, all the premium / discount is published in detail.
Buying warrants at a discount is a great strategy. Just that you need to buy nearer to expiry date so that you can collect your payment sooner.
Most people don't even know whether a stock will rise or fall, how can one do well in warrant?
Next episode: How to know a stock will rise or fall?
U can hardly get cws with discounts, mostly for those going to expire soon..
The right strategy should be aiming for those cw with low premiums n 3 to 4 months shelf life n most importantly u believe that mother share has good upside potential..in this case i think some of AA cws worths a punt
You can do a simple calculation! 40sen multiply by 3.342bil shares! Even a small % of this can buy up many millions of share of AirAsia at current price!
Say edi short term mid term cannot play de you will loose !! Now is new gov !! EPF in & out repeat !!! Unless you are as big as EPF you can’t win here !! Only for long term people !! Minimum 3years !!
After Malaysia told off China Nationals from buying Forest City tourists from China has dropped drastically - leading to a collapse in sale by Padini in Jpo and others
So passengers from China might drop leading to poor business for Airasia
Better sell off Air Asia early before its share price falls like Padini
Dun worry financial results speak for itself...500 fleet by 2028...now aa is only on the growth stage...not even matured...budget airline will keep on growing the market...there r so many ppl more to connect n places yet to reach...
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upshare
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Posted by upshare > 2018-12-14 17:24 | Report Abuse
Hope go down... i want buy..