sometime market making system is facing technical problem, the futures data is frozen, so when the futures going up already, it is still selling at the frozen price. U can make some money out of the technical glitch.
BB, I guess that the market maker temporary pause it to adjust the Implied Volatility value which will affect the bid/ask price, that's why sometimes it needs 25786 for C1B to sell at 0.705, sometimes at 25792 to sell at 0.705.
hi Fairplayer, can you teach me how to calculate the actual value of a HSI call warrant. I never hold any warrant during the expiry date. it is just my interest to learn it. Let use C84 as an example and let say it is going to expired, i should follow HSI future index or current index to calculate? C84 conversion rate : 24400, with ration 900:1
if follow current future index 25774, then should be (25774 - 24400) / 900 = 1.5266 If follow cash index at 25823, then should be (25823 - 24400) / 900 = 1.5833
HSI appears like wanting to take its time (another 10-12hrs up till US Close tonite) to form another (additional) cup at a higher level (25820-25760) before the next move. 14.00 & later should be clearer..... 25860 important breakout level to monitor.
Crossing 26000 & above would be good for WEEKLY close, especially for fund's records & for MISC inclusion (even thou personally dont care much for this).....
(note the earlier cup level was 25600-25700 level)
huat168, nobody will hold index warrant until expiry unless you foresee that the index is a straight line up 3 continuous trading days before expiry. Furthermore it takes 7 working days to pay you a check and 1 to 2 days for the check to arrive at your house, you lose 10 days opportunity cost. Settlement level is based on HSI cash market closing price at expiry not futures. Anyway below is FYI:
Your index warrant will be automatically exercised if you hold it until expiry. If the Cash Settlement Amount (“CSA”) is positive, Macquarie will make a cheque payment to you within 7 market days after expiry.
Cash settlement amount for index warrants :
Index Call Warrant :
CSA = (Settlement level - Excerise Level)/Exercise Ratio x FX rate
Index Put Warrant :
CSA = (Excerise Level - Settlement level)/Exercise Ratio x FX rate
I see and clear now. Thanks for answering my query since long ago. I didn't hold for longer time, the most I hold is only about 3-4 days for hsi warrant. Most of the time is day trade or hold for 1 day.
Look at Dji for clues..As I expected,it wud be in correction mode based on earlier bearish signal from candlestick pattern.Hopefully it wud be shallow if it corrects further today.
It has not reached to a point where it shud rebound today as current w4 is a complex structure with current C downleg requires to develop with a 5 waves seq...do I make clear.
Duit..u know I don't read Chinese.Didnt know it was you juz now...there shud be a strong support,likely be a double bottom pattern to be seen at 414.The 5th wave seems to be a prolonged one.
This is clear and obvious trend upwards 26XXX, if i miss this run due to market noices & nuances, I would BLAME MYSELF 100% for poor trend reading & no-market conviction and lousy & inept judgement!!!
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fairplayer
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Posted by fairplayer > 2017-06-22 11:57 | Report Abuse
Huat168, market making system technical glitch, selling at lower than fair price, quickly sapu first then sell it back when it is back to fair price.