Posted by tonylim > 2013-06-22 18:55 | Report Abuse

kcchong, if Bursa is in your screens, care to write some notes here on its cw.

Where is mat cendana

I see some re ratings soon.

Posted by kcchongnz > 2013-06-22 19:00 | Report Abuse

tonylim,
Maybank CW at 23.5 sen when the underlying share at 10.26 now is still trading at a discount of .83%. With a good effective leverage of 8.6 times, it is still a good punt. Something I really can't understand why such a situation exist perpetually, besides the market doesn't agree with the price of the underlying share.

Just came back from a golf outing. will look at other call warrants soon. The thing is this punting of call warrant have to constantly look at the market prices and sentiment. The situation is dynamic and changes every now and then.

Posted by BC475654 > 2013-06-22 19:48 | Report Abuse

Mat Cendana has been missing for weeks.Sincerely wish him well and in good health.

Posted by heeroo > 2013-06-22 20:11 | Report Abuse

Easy to reach @ 0.27 when mother 10.45^^.. Price 0.21-0.23 consider cheaper.. exercise price only RM9.

Posted by kcchongnz > 2013-06-23 18:50 | Report Abuse

Posted by tonylim > Jun 22, 2013 06:55 PM | Report Abuse
kcchong, if Bursa is in your screens, care to write some notes here on its cw.

There are 5 call warrants for Bursa on 23/6/2013.

Warrant Price Ex-Price Ex-Ratio Expiry date Premium Gearing
C1 0.265 6.30 5.00 26/08/2013 0.3% 5.7
C2 0.285 6.30 6.00 18/11/2013 5.4% 4.4
C3 0.275 6.60 4.00 28/02/2014 1.3% 6.9
C4 0.140 8.00 4.00 30/05/2014 12.6% 13.6
CZ 0.280 6.50 4.00 31/07/2013 0.3% 6.8
Bursa share price at 7.60 on 23/6/13

C1 and CZ has the same lowest premium of 0.3%. This means that if Bursa share price just go up by 0.3% from RM7.60 now at the expiry of the respective call warrant, punters who have bought C1 and CZ at 26.5 sen and 28 sen respectively would make money when they cash settle the call warrants at expiry. C1 and CZ provide the safest bets among all the call warrants due to their low premiums. However they are quite close to their expiry date now with about 1 to 2 months time.

C3 with slightly higher premium at 1.3% would be a better punt than C1 and CZ by virtue that it has a much longer expiry date of 8 more months to go, hence more chance for it go up by more than its premium of 1.3% now. I personally would prefer to punt on this call warrant.

Some punters may like the explosive, C4, as it has a much higher gearing of 13.6 times and the longest expiry date. However, it’s premium is relatively higher at 12.6%. If one anticipates that there is high volatility of Bursa share before the expiry of C4, it provides the most exciting play.

Eventually whether one can make money from punting on the call warrants is very much dependent on the rise of Bursa share price. The additional risk is that at RM7.60 now, Bursa is already above the average target price of RM7.53 by the investment banks.

The table below shows the payoff of the call warrants when they are cash settle off at expiry for various prices of Bursa share price.

Uly Price 6.50 7.00 7.60 7.63 8.00 8.20 8.40 8.80 9.35
Bursa -14.5% -7.9% 0.0% 0.3% 5.3% 7.9% 10.5% 15.8% 23.0%
C1 -84.9% -47.2% -1.9% 0.0% 28.3% 43.4% 58.5% 88.7% 130.2%
C2 -88.3% -59.1% -24.0% -22.5% -0.6% 11.1% 22.8% 46.2% 78.4%
C3 -100.0% -63.6% -9.1% -6.8% 27.3% 45.5% 63.6% 100.0% 150.0%
C4 -100.0% -100.0% -100.0% -100.0% -100.0% -64.3% -28.6% 42.9% 141.1%
CZ -100.0% -55.4% -1.8% 0.4% 33.9% 51.8% 69.6% 105.4% 154.5%

Posted by tonylim > 2013-06-23 21:33 | Report Abuse

Many thanks, kcchong.
Ok lets look at c3

Posted by g888 > 2013-07-30 09:49 | Report Abuse

y this few days keep dropping?

Posted by alibiii > 2013-08-02 11:59 | Report Abuse

"kcchongnz Maybank CW at 23.5 sen when the underlying share at 10.26 now is still trading at a discount of .83%. With a good effective leverage of 8.6 times, it is still a good punt. Something I really can't understand why such a situation exist perpetually, besides the market doesn't agree with the price of the underlying share. "

don't forget maybank may have divedent ex in the month of september just before CW expiry, that's explain why CW trading at discount now

Posted by kcchongnz > 2013-08-02 12:02 | Report Abuse

alibiii, you are absolutely right. But again we won't know when the ex-dividend date is getting nearer, will Maybank share price also will rise as more investors may be attracted to buy to get that dividend, do we?

Posted by houseofordos > 2013-08-02 17:44 | Report Abuse

hey KC, you still invested/punting in Maybank CW ?

Posted by kcchongnz > 2013-08-02 17:53 | Report Abuse

No more. all sold and not looking it right now. Why? anything interesting? Btw, if you see anything interesting, let me know.

Posted by houseofordos > 2013-08-02 17:58 | Report Abuse

haha... nola... me enter and exit a few times already... just wondering what you think about the prospects... still can punt or not...

Posted by kcchongnz > 2013-08-02 18:09 | Report Abuse

Just looked at the prices, Maybank 10.32, CW 0.235. theoritically still 1.4% discount. But watch out what alibiii said above. There is a dividend which will be ex-dated just before expiry of CW at end of September. So if Maybank share price stays at it is, and the share price adjusted to the dividend of 32 sen (assume same as last year), to 10.00, you will lose money, 15% to be exact.

So the risk-reward is not good. Further you really have to watch the prices all the time. Remember how Maybank share dropped by a lot two days ago?

Posted by tonylim > 2013-08-02 20:09 | Report Abuse

g888 did u mean bursa cw?
I have taken profit last week.

Posted by jkngo2003 > 2013-09-06 16:41 | Report Abuse

may i know why this share price still so high?

Posted by tanyuethan > 2014-04-08 15:17 | Report Abuse

i dun understand CW

Posted by yingzhe17 > 2020-07-22 21:04 | Report Abuse

Just sold all. Tq suckers. Come sept buy again because your provision just up 50%