Posted by passerby > 2013-04-08 10:31 | Report Abuse

kcchongnz, are you in already or just in look see look see mode? :)

Posted by kcchongnz > 2013-04-08 11:31 | Report Abuse

passerby I bought already oh at 18.5 sen last week. That was why I "promote" C2 mah so that I can sell you high. Tenage went up to 7.68 now. By right c2 should worth more than 19.5 sen. Don't you think so?

Posted by passerby > 2013-04-08 11:34 | Report Abuse

so you realize what the market maker is doing currently :) , never see never know

they just cannot afford to lose....lol

Posted by kcchongnz > 2013-04-08 11:37 | Report Abuse

passerby, what the market maker doing ah? Please enlighten.

Posted by passerby > 2013-04-08 11:43 | Report Abuse

you mentioned by right it should worth more than 0.195 mah , so is the market maker queuing to buy back now? if the underlying keep surging but market maker just don't want to increase the bid price to buy with sufficient volume , is that a fair market making practice ? :)

even CIMB IB behave like this...

Posted by kcchongnz > 2013-04-08 11:48 | Report Abuse

Writers of option should have followed the best practice in the sense that they should have done the proper hedging, in a dynamic way. So by right they should be indifferent to the rise of C2 because they should have the necessary amount of Tenaga share to hedge. Remember C2 or other call warrants go up because Tenaga share go up, and market makers should have enough Tenaga shares to make them indifferent to the rise or fall of call warrants. Btw, this is just theoretical.

Posted by passerby > 2013-04-08 11:59 | Report Abuse

meaning they have not done proper hedging ? or they are not suppose to buy back as market maker ?

today TNB went up as high as 7.75 , market maker bid to buy back for C2 max stagnant at 0.185....

if they continue to do like this, sooner the low premium calculated when you entered will be meaningless....

Posted by kcchongnz > 2013-04-08 12:10 | Report Abuse

Call warrants would eventually go up when it is closer to expiry if the mother share price keep on going up, because eventually IB got to cash settle the expiring warrants, whether they buy back the warrants or not. For a liquid share like Tenaga, my opinion is that it is very difficult for Ib to manipulate. So premium is still very important.

Posted by passerby > 2013-04-08 12:21 | Report Abuse

still, it is pissing me off when they didn't do the market making fairly this morning....to kiasu..., if they did, the traders could have exited & re-enter back in short duration this morning....

Posted by passerby > 2013-04-08 19:03 | Report Abuse

As 29 Mar 2013 - only 100,000 units circulated in the public.http://www.bursamalaysia.com/market/listed-companies/structured-warrants/1244825

not easy to deal with the market maker after all...taking note on today observation :)

Posted by kcchongnz > 2013-04-09 10:41 | Report Abuse

passerby, yeah I do notice that the market is not doing the market making job fairly and responsibly. But think of it, do you think whose interest is more important to them, ours or theirs? The way I look at CIMB's market making here, they won't give you a good price such that you can sell to them; and they won't buy from you at a fair price too. So for those impatient small retailer, they sell to CIMB at the low bid, and some buy high from them. So will we always be at the losing end? I don't think so. We just have to play with them. There is still more than 8 months before C2 expires. Let us look at the gain/loss for Tenaga and C2 at settlement as shown in the table below.

Tenaga Price 7.10 7.58 7.78 7.83 8.10 8.40 8.60
Tenaga Gain -6.3% 0.0% 2.6% 3.2% 6.9% 10.8% 13.5%
C2 gain -77% -22% 0% 6% 37% 71% 94%

If you buy C2 at the present price of 17.5 sen now, you will at least breakeven when Tenaga just rise by 20 sen, or 2.6% to 7.78 within this 8 months plus. If Tenaga can go up by 6.9% to the average target price of the investment banks, you will gain at least 37%. Is it so difficult for Tenaga to gain 2.6%, or even 6.9% within this 8.6 months time? CIMB may be able to control the price rise of C2 and that also ois temporary, but can they control the price rise of Tenaga, taking into consideration the liquidity and volatility of this stock recently? Those gains mentioned above are the settlement gain/loss at the expiry date of C2. CIMB has to settle the price accordingly when C2 expires.

Hence I feel C2 is way undervalued in relation to Tenaga share, and it offers a good punt at a gearing of 8.7 times. If we are patient, we may be able to make some good money. Of course if the overall market goes south, then C2 will go north to Holland liow.

What say you?

Posted by passerby > 2013-04-09 12:00 | Report Abuse

I'm still in for it now, it is on uptrend mode. I'm bet on the uptrend cycle

see if the market maker bid become fairer after 3pm today. If really become fairer , probably market maker are trying to flush the contra kakis out :)

they are watching us, we are trying to watch them also....their market making disclosure become more details nowadays, a lot of improvement from years ago when the information is hardly available.

worth to look at the glove related counter CWs now, very limited CWs available. Worth to pick up when there is pull back or correction.

Posted by passerby > 2013-04-10 10:16 | Report Abuse

wrong thread, post still around

Posted by kcchongnz > 2013-04-10 10:19 | Report Abuse

passerby, now punt Supermax CK?

Posted by passerby > 2013-04-10 10:19 | Report Abuse

positive territory this morning, Q2 result on 19th Apr 2013.

Posted by passerby > 2013-04-12 14:13 | Report Abuse

it came down again. taken any profit last 2 days ?

not on Supermax, Supermax not in my list.

Posted by kcchongnz > 2013-04-12 14:22 | Report Abuse

You are bloody right passerby. Market maker not doing the job fairly. but again they have to take care of their own interest.

I was lucky, sold some at 21.5 sen and bought back some at 20.5 sen. But today price not good. More than 50% of the trade yesterday was mine. I think can play with the market maker. The stock has the liquidity and volatility and the premium is not high.

What about you? Supermax CK is a good punt at 5.5 sen if you believe there is a glove counters play before its expiry in 5 months. Premium is just about 6% and gearing at 12 times. Have a look at it.

Posted by tonylim > 2013-04-12 14:33 | Report Abuse

Passer did u follow bursa cz

Posted by passerby > 2013-04-12 14:48 | Report Abuse

I took profit on Tenaga-C2 2 days ago. Might consider re-entry at good support level but market maker activity for this particular C2 is such are.....%&*#$^% !

There is chance of bird flu speculation to fail , hence I'll prefer Harta CWs over the rest of the glove makers CWs. Coz Harta is still the leader among the gloves maker in term of profit margin . At least, if speculation element for the flu getting worse don't materialize, Harta CWs still got some fundamental backing by itself.

I entered some Pos-CL on strong support for underlying yesterday & exited this morning, the market maker at Pos-CL is much more better than Tenaga-C2.

@tonylim - Bursa not in my list, so didn't follow any of the CWs tracking Bursa

Posted by passerby > 2013-04-12 14:59 | Report Abuse

you buy back too early, now is 0.185 again :)

Posted by tonylim > 2013-04-12 15:00 | Report Abuse

You gota be patient on harta shares. Player still at large. . I already clear harta-w

Posted by passerby > 2013-04-12 15:02 | Report Abuse

i don't mind to cut loss if really doesn't turn out to be as speculated

my exposure is minimum also :)

Posted by passerby > 2013-04-15 10:18 | Report Abuse

today no participation of market maker at all .....kanasai , really need to record down this observation.

this verified what mentioned by lotsofmoney. we should let this market maker die naturally by banning them in future if this kind of activities is repeat again & again

Posted by passerby > 2013-04-17 09:03 | Report Abuse

done with my 3rd round :)

Posted by kcchongnz > 2013-04-17 09:45 | Report Abuse

With the volatility of the mother share, Tenaga C2 is berry berry interesting to punt!

Posted by passerby > 2013-04-17 09:50 | Report Abuse

how many rounds already kcchongnz?

Posted by kcchongnz > 2013-04-17 09:59 | Report Abuse

Same like you. But even with the present price of Tenaga at 7.86, C2 at 21.5 sen and gearing of 7.3 times, and more than 8 months to expire, plus investment bankers bullish about Tenaga, don't you think this call warrants exciting? You can actually see how the market maker at work as probably you and me are the only individual players now punting on it. Call warrants price has to move in tandem with the underlying share price. Even maker has to abide that.

Posted by passerby > 2013-04-18 08:51 | Report Abuse

it went higher at closing yesterday :), sold too early .i'm still going in & out until can find a better alternative.

not only on this particular CW, if you could notice, the other CWs by the same market maker have limited activity recently. Their bid for buying & selling spread like .....pathetic, I can only spot retail traders buying & selling queue only with no participation from the market maker - example Pos-CL

I'm still observing hold long they can do this kind of buying & selling spread. Suspecting T+3 counts & are affecting their market making activity. If we can find out or estimate the duration the market maker are toying with the buying & selling spread before abiding a fairer market making activity, it will be advantageous to us.

I'm eyeing Topglove CWs now, switching target from Harta CWs. Topglove it is on the top gainer list yesterday outdoing other glove counters.

Posted by kcchongnz > 2013-04-18 11:09 | Report Abuse

That was my last 500000 shares of Tenaga C2 done at 23.5 sen. Only two players there today, me and CIMB. Market maker now widen the bid-ask spread. Never mind,as long as there is volatility of Tenaga share, a reasonable premium, and a good gearing, nice probability of making money.

Posted by passerby > 2013-04-18 12:03 | Report Abuse

500,000 units ? you throw so much capital into CWs ? siao meh

Posted by kcchongnz > 2013-04-18 12:15 | Report Abuse

Oop, one zero more. Mistake.