Posted by Shellhouse > 2016-01-29 12:19 | Report Abuse

For CALL : [ (exercise ratio x current price ) + current index = breakeven index
For PUT : [ (exercise ratio x current price ) - current index = breakeven index

Simple maths

Posted by cashflow > 2016-01-29 12:22 | Report Abuse

It's merely opposite. The bank does not have obligation but the bank set's the mathematics on the product. Yes I know the product get's endorsed by Bursa, etc, but based on experience, there is never been an easy way to get out once you enter warrants. Reason is, the mathematics are set to trap you and chance to go out only determined by volume, volatility and heartbeat.

Posted by Shellhouse > 2016-01-29 12:27 | Report Abuse

Cashflow : I share your view.

Which is exactly the reason why there is such high risk involved. The market always has other plans. But if I were the bank I will take advantage of demand. Its not possible for us retailers to fight a financial institution with unlimited supply of bullets.

I suggest for future, try asking yourself what YOU THINK the index will be at MATURITY date. Then judge for yourself if the current price is too high/low.

Structured warrants are ALWAYS a gamble. you're essentially betting on a higher or lower index/stock price. You stand a 50/50 chance. If you're bullish get the CALLs.If youre bearish, get the PUTs.

Its called a "PREMIUM" for a reason.

Posted by Shellhouse > 2016-01-29 12:32 | Report Abuse

NEVER put all your money in structured warrants.

Another tip, the higher the conversion ratio, the more volatile the price movement. One day you're up 20%, next day you're down 50%. I try to avoid high conversion ratio stuff.

Posted by Shellhouse > 2016-01-29 12:33 | Report Abuse

Cashflow @ Jan 29, 2016 01:32 AM | Report Abuse

Westgun, it is not easy to price in an event which cannot be forecasted due to its poor likelihood. No one predicted the hydrogen bomb test by North Korea, and no one could ever predict when a real war would happen. When it happens, then market will react on the news. At the moment, people are trying to speculate to drive the market the way they want. Until Obama announces the war, it's still a speculation.

Posted by cashflow > 2016-01-29 12:36 | Report Abuse

Shellhouse, yes indeed, but the market has its own pencil to chart these warrants. H25 was a good example where you could make almost 150% profit even with high ratio if the time is right. We are not fortune tellers but trading at these "con style" gestures, one could make money, or vice versa.

Posted by popcorn > 2016-01-29 12:51 | Report Abuse

must try to buy and sell fast~
otherwise will get trap...

HSI or China50 warrant which issue by Macquarie move even faster than those CIMB warrants of FBMKLCI...
what I can say FBMKLCI structured warrant is suck~ not only CIMB, some of Macquarie also the same shit~

Posted by cashflow > 2016-01-29 13:27 | Report Abuse

sometimes cepat masuk, lambat keluar, lambat kaya, bank lambai saja

Posted by Shellhouse > 2016-01-29 14:08 | Report Abuse

Anyway, all asian indexes green. 2-3% gains. Oil is moving up.

After lunch KLCI surely surge.

Good luck those in C22. You will see big money soon!

Posted by Pauline1989 > 2016-01-29 14:47 |

Post removed.Why?

Posted by cashflow > 2016-01-29 15:20 | Report Abuse

The bank heard my complaint! No rally yet?

Posted by cashflow > 2016-01-29 15:21 | Report Abuse

9 cents, come come!!

Posted by popcorn > 2016-01-29 15:24 | Report Abuse

cashflow, you help a lot~

pls complain C40 also... 3.6millions volume sold at 3cents since this morning~

Posted by cashflow > 2016-01-29 15:25 | Report Abuse

If Maxis rebound, KLCI above 24 points

Posted by cashflow > 2016-01-29 15:30 | Report Abuse

KLCI already hit support!! Tracing next support 1670

Posted by cashflow > 2016-01-29 15:43 | Report Abuse

Big volume, come!

Posted by cashflow > 2016-01-29 15:52 | Report Abuse

Come on Maxis, shoot up, help lift FBM

Posted by cashflow > 2016-01-29 16:01 | Report Abuse

Europe positive rebound, steam up KLCI

Posted by cashflow > 2016-01-29 16:31 | Report Abuse

yea!! Go Go

Posted by cashflow > 2016-01-29 16:33 | Report Abuse

KLCI 1700 is an easy bet now

Posted by cashflow > 2016-01-29 16:48 | Report Abuse

wow, KLCI flicked 40 points, big money in for next week

Posted by Lim Elson > 2016-01-29 17:44 |

Post removed.Why?

Posted by cashflow > 2016-01-29 21:25 | Report Abuse

Bank of Japan move in negative rate was unexpected, and first time

Posted by cashflow > 2016-01-30 23:57 | Report Abuse

Monday global will rise, unfortunately Public holiday for Malaysia.

Posted by NIBIRU_T > 2016-01-31 08:10 | Report Abuse

too many public holiday in this country, should have cut down, miss a lot of good trading...

Posted by cashflow > 2016-02-02 08:56 | Report Abuse

KLCI go 1700!

Posted by NIBIRU_T > 2016-02-02 10:50 | Report Abuse

klci drops so much but movements of calls & puts ???

Posted by cashflow > 2016-02-02 12:32 | Report Abuse

Its profit taking week, market will stabilize regardless because there is no strong catalyst to downtrend, even after Q4 report, surprisingly stocks stay floating.

Posted by cashflow > 2016-02-03 12:00 | Report Abuse

FBM counters recovering, tomorrow can expect C counters to improvise

Posted by popcorn > 2016-02-03 12:32 | Report Abuse

new CW 0650C42 movement quite sensitive, if really confident index will rebound, you can try your luck~

Posted by NIBIRU_T > 2016-02-03 14:28 | Report Abuse

shanghai composite index shooting up, leading bursa index recover a bit after 2.30pm...

Posted by NIBIRU_T > 2016-02-03 14:59 | Report Abuse

popcorn, C42 can be considered...thanks for infor.

Posted by crystal168 > 2016-02-03 15:42 | Report Abuse

:)

Posted by cashflow > 2016-02-10 22:01 | Report Abuse

Major stock sell off in Japan and China yet to follow, but it will be a quick rebound because risks already priced in.

Posted by cashflow > 2016-02-12 11:50 | Report Abuse

C22 volume picking up, get on the boat when you still have the chance

Posted by cashflow > 2016-02-12 13:50 | Report Abuse

anyone still here?

Posted by Kumi_duit > 2016-02-12 13:55 | Report Abuse

Yeah !

Posted by cashflow > 2016-02-15 07:11 | Report Abuse

C22 will be loaded today. Thanks to the oil rally

Posted by Dell888 > 2016-02-15 07:40 | Report Abuse

Burnt today! Faster run

Posted by cashflow > 2016-02-15 09:29 | Report Abuse

Big volume coming

Posted by cashflow > 2016-02-15 09:31 | Report Abuse

A lot of retailers back from holiday and will chase this rally

Posted by cashflow > 2016-02-15 09:41 | Report Abuse

Go Go Go!!!!!!!!!

Posted by cashflow > 2016-02-15 10:19 | Report Abuse

9 cents coming

Posted by cashflow > 2016-02-15 10:19 | Report Abuse

Cheapest premium warrant in town!

Posted by nibiru_t > 2016-02-15 12:18 | Report Abuse

C22 habis cerita...

Posted by cashflow > 2016-02-15 20:40 | Report Abuse

I am hedging on puts also, H27, volatile market.

Posted by nibiru_t > 2016-02-15 21:59 | Report Abuse

cashflow, is really risky on H27 now due to the prices keep on down similarly with H5, why not H43 ?

Posted by cashflow > 2016-02-15 23:11 | Report Abuse

H43 appears a good buy too. I will probe both options, market too volatile, KLCI seems a little bullish, I am expecting some correction based on 1 day chart.

Posted by cashflow > 2016-02-15 23:13 | Report Abuse

H5 on the contrary had much lower exercise price, hence the risk of downside with the given time. H27 will expire end of May, and with exercise price of 1550, its still worth considering because KLCI trend sometimes can be shocking with sharp downward candles.

Posted by Bilis Bilis > 2016-04-04 18:25 | Report Abuse

Bilis Bilis Mar 31, 2016 04:43 PM | Report Abuse
I am seeing KLCI going into minor run up next 4 days from 1713 today, 1720, 1720-22, 1725-30, 1731-1744.....

--------------------------------------
The above reading is correct except for today's target 1722 being overpaced by the near closing 1725 (running into tomorrow's portion...maybe making up for last friday's loss time.)

So any morning pullback into 1720-22 (or even 1719-8) is natural and to be expected,,,, and shud be reversed to the higher 1724-1726 ...

Expect pace to be bigger from now (>10 points moves) next 2-3 days into the 1730-1732, 1733-1744....

I was so bored i went C4,C22,C24...i dont expect CIMB to be as aggressive as Makuali in running their Cs , perhaps 50% daily ...

I dont expect Hs to work until the above targets is reached...