Posted by lextcs > 2015-06-05 13:10 | Report Abuse

KNOWLEDGE IS KEY! Here is how the conversion works :- todays most active put warrants :- china50 H4 underlying index (UI) exercise price (EP) conversion ratio (R) cash back (C) current market price (cp) premium/discount (PD) FORMULA = EP-UI/R=C CP-C = PD 14000-14130= (-130)/10000 = (-0.0.13)or zero cash back current price 0.70/share paid for a holding period of 5 months index would have to plunged to 7000! to breakeven at this current hefty premium. SOMEONE IS LAUGHING ALL THE WAY TO THE BANK.

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11 comment(s). Last comment by wintertime 2015-06-09 13:55

lextcs

1,961 posts

Posted by lextcs > 2015-06-05 14:01 | Report Abuse

now the 2nd most active put warrants traded is H2

exercise price is 12000! which means index would have to plunged (30%)to 10000 level for it to have a 0.20 cash back

expiry is 28/815

SOMEONE IS STILL LAUGHING

lextcs

1,961 posts

Posted by lextcs > 2015-06-05 14:08 | Report Abuse

china50 c5

14130 less EP 14500 = -370 /10000 = -ve or ZERO cash back

current value 0.665 expiry dec 15

index will have to rise up to 21000!!! to get back 0.65c

SOMEONE IS LAUGHING STILL

tjhldg

27,218 posts

Posted by tjhldg > 2015-06-08 01:48 | Report Abuse

KNOWLEDGE IS KEY!

Here is how the conversion works :-

for H2
12000 - 11500 = 500/10000 = 0.05 x 3.72 = 0.186
12000 - 11000 = 1000/10000 = 0.10 x 3.72 = 0.372

all about high volatility and time value , 500 to 1000 points is easy aeh and is per day !


For C2
13965 - 12500 = 1465 /10000 = 0.1465 x 3.72 = 0.5449



for H4 if is 7000 points , then
14000- 7000 = 7000/1000= 0.70 x 3.72 = Rm 2.604

for c5
if is 21000 poinnts then , hahahahaah
21000 - 14500= 6500/10000=0.65 x 3.72 = RM 2.418


hahahahahahah ... go check check la :)


and dont ask me why need to time 3.72 wohhh ... since u can buka blog and talk on this .....hahahahahahaahahhahahaahhahaahhaah

lextcs

1,961 posts

Posted by lextcs > 2015-06-09 12:34 | Report Abuse

yes... it is in USD denomination now 3.8 but not sure if the currency calculator is peg or varies accordingly at the exercise date....currently the c2 looks pretty.

lextcs

1,961 posts

Posted by lextcs > 2015-06-09 12:38 | Report Abuse

the conversion ratio is ridiculous...the options market in US is fairest of them all...1:1 with exercise prices @ various levels ... it is the most active derivatives mkt in the world.

tjhldg

27,218 posts

Posted by tjhldg > 2015-06-09 12:41 | Report Abuse

Hehhehehh ... The rules is set .. Either you take it or leave it ..
Call this number 03 20598840 .. U get all your answer .. Is base on China A 50 .. Not FTSE
Happy trading

tjhldg

27,218 posts

Posted by tjhldg > 2015-06-09 12:43 | Report Abuse

Macquarie capital ... The market maker

SumuaOK

204 posts

Posted by SumuaOK > 2015-06-09 12:50 | Report Abuse

Wonder why the fools still buying ? High vol somemore???

tjhldg

27,218 posts

Posted by tjhldg > 2015-06-09 12:55 | Report Abuse

Fool ?pple make millions in this la ... Tak faham or can't take the risk le , stay away from this type.. Don't say pple fool.. Behave sikit in public ..make yourself embarrase more nia

SumuaOK

204 posts

Posted by SumuaOK > 2015-06-09 13:52 | Report Abuse

How to make $$ in the H warrants?
You already said it what.

wintertime

483 posts

Posted by wintertime > 2015-06-09 13:55 | Report Abuse

yup can make few k in this counter but have to monitor chinaA50 future movement to justify wheather to buy h or buy c

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