Structured warrants

[teresa90]

Hey guys, I'm new to structured warrants and I've got some questions (google doesn't particularly help much, unfortunately).

Most of the warrants listed on SGX are EU styled, which I take to mean that it's only exercisable on expiration date, right? Isn't it the case that the time value would be 0 by that point? Does this also mean that once I buy a call warrant, for instance, there's nothing I can do but wait till expiration date for it to be exercised automatically by the issuer?

Any help would be greatly appreciated!

 

[Asphodeli]

Structured warrants for individual stocks cannot be exercised?

 

[ctstalin]

The market maker will exercise the warrants provided they expire in the money.
Warrants traded in sgx are usually settled in cash.

 

[ctstalin]

u never trade before u dun anyhow say... exercise means take delivery leh.... example u call HSI... how they gonna give u HSI?

le siao bo............

you mai self pwn lah, exercise not only means taking delivery

for HSI call warrant, at expiration, underlying price - exercise price - market maker premium = profit settled in cash

seasoned investor

 

[ctstalin]

- market maker premium <-------- this is a percentage leh....... LOL

u also missed out on commission... so 100% confirm u never traded warrants before... u only read website know theory nia

agar agar lah aiyo...need to spoonfeed meh?

i trade warrants last year and paid school fees hor

and i don't keep warrants till expiry one, too risky, i'd rather sell back to market maker before it expires

 

[wahkao3]

are warrents low risk, high return?

if not, dont bother. Its probably just another financial engineering instrument

 

[Asphodeli]

there is no delivery..... basically singapore warrants is player vs banker

u buy a OCBC call warrant at $7... if expiry ocbc is $7.50 u get 50 cents and your position is closed... as simple as that (in this example its 1warrant for 1share)


like I said this game is player vs banker... in the long run the BANKER ALWAYS WINS

u cannot sell warrants... can only buy put or call warrants, thus player is always PAYING PREMIUMS

Oh...no wonder the "bookies" dare to declare the prices so low/high la... LOL!

Well there goes my idea of buying the OCBC call warrant while saving up cash, as "insurance" against share price from going up

Sent from Sony D5833 using GAGT

 

[antonpoh]

Hey guys, I'm new to structured warrants and I've got some questions (google doesn't particularly help much, unfortunately).

Most of the warrants listed on SGX are EU styled, which I take to mean that it's only exercisable on expiration date, right? Isn't it the case that the time value would be 0 by that point? Does this also mean that once I buy a call warrant, for instance, there's nothing I can do but wait till expiration date for it to be exercised automatically by the issuer?

Any help would be greatly appreciated!

For now, no one in his/her right mind should buy any 'call warrant' cause the stock market is still on the way down. (Should be looking at put warrant)

Once you buy a call/put warrant, you can sell anytime(even after 5mins). So why need to wait till expiry date to exercise?

Only those Company Warrants can exercise and converted to shares. Structured warrants are converted to cash and return back to you, when it expired.

Only pick those with Conversion Ratio 1 warrant(s) : 1 share(s)
Means if the stock move up 10cent, your warrant also up 10c.

Also need to check the 'Exercise Price' before buying.
If the stock price is $2, exercise price is $1.80. Then the warrant should be aro 20cent.

 

[antonpoh]

This is definitely not true.

It is not true when the 'Conversion Ratio' is not 1 warrant(s) : 1 share(s).