Haha chill guys. @spyking is right to point out that WB is indeed very dangerous to play. It's would be somewhat ok if say the exercise price is RM0.45. But ex price at RM1.00 and only 5 months left to expiry, playing the WB is really asking for trouble.
Why? Because if you were to use the option pricing on Bloomberg, I bet the WB is close to being worthless. It decays a lot faster when it's closer to expiry.
If you get it right, say bought today and next week mum flies to RM0.50, then most probably you'll make a good gain on the WB. But there is no catalyst for KNM at the moment, so if mum continues to be range bound, WB will slowly decay.
So if you wanna play WB, by all means play, but be mindful of what the risks are.
Playing the WB now and hoping for a goreng or for mum to spike is what's described as the "lottery effect". Look it up.
knm warrant is about to expire... mostly will get trap... knew this since mid of the year already when the dateline is approaching but price hold... KNM super rich by this..
Kai Won Oil counter fall because of uncertainty oil price. I think the problem are fixed.
Exactly! Energy counters still not follow market trend and it's been retraced for 2 weeks already!
But wait till next week and see.. Opec confirm cut production, oil price rally + Aramco will be listed on next wed. Let see what will happen to all energy counters. Sentiment will play.
Like now plantation uptrend. Most of the counters especially those growing one, with project news etc are actively traded. Even lost making counter like astral, tdm price move upwards. Sentiment.
Thats why be patient. If u cant control your emotion just shut down your internet, go fishing.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
bizzybone
286 posts
Posted by bizzybone > 2019-12-06 17:24 | Report Abuse
Haha chill guys. @spyking is right to point out that WB is indeed very dangerous to play. It's would be somewhat ok if say the exercise price is RM0.45. But ex price at RM1.00 and only 5 months left to expiry, playing the WB is really asking for trouble.
Why? Because if you were to use the option pricing on Bloomberg, I bet the WB is close to being worthless. It decays a lot faster when it's closer to expiry.
If you get it right, say bought today and next week mum flies to RM0.50, then most probably you'll make a good gain on the WB. But there is no catalyst for KNM at the moment, so if mum continues to be range bound, WB will slowly decay.
So if you wanna play WB, by all means play, but be mindful of what the risks are.
Playing the WB now and hoping for a goreng or for mum to spike is what's described as the "lottery effect". Look it up.