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Warrants,option and futures
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Thanks for the reply, I agree with you very hard to make money from Sg warrants. There is no long term index warrants and Banks can change the price/spreads easily. I only use them for short term speculative investment, with limited success i must say :)
In the long term looking to US market as well.
keepnosecrets ( Date: 17-Sep-2009 15:29) Posted:
Not only your frens or sources can testify that spore warrants hard to play and make money, I also thinking the same. The reasons: One, SGX is not advance in derivatives, sorry to say that, so few players are interested. Only bbs issue warrants here and their strike prices, premiums and expiry dates are always unfavourable to us. I don't like to play Sgx style warrants as very hard to get the right information about the issues. But theoretically if the call and put warrants are from the same mother share, and the date of expiry is more than 6 months and the mother share is volatile and have good ranges, then playing the warrants is encouraging since it is easier to make money. But as you know we here have a kiasu and conservative market, very little range in many mother shares, and warrants are mostly one way, not advisable to play.
For option time frame, or even warrants whose mother shares are active and ranging, a 6 month period will be sufficient for you to make good investments. Go for US options and you can really make a bundle if you dare to risk some capital. |
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Not only your frens or sources can testify that spore warrants hard to play and make money, I also thinking the same. The reasons: One, SGX is not advance in derivatives, sorry to say that, so few players are interested. Only bbs issue warrants here and their strike prices, premiums and expiry dates are always unfavourable to us. I don't like to play Sgx style warrants as very hard to get the right information about the issues. But theoretically if the call and put warrants are from the same mother share, and the date of expiry is more than 6 months and the mother share is volatile and have good ranges, then playing the warrants is encouraging since it is easier to make money. But as you know we here have a kiasu and conservative market, very little range in many mother shares, and warrants are mostly one way, not advisable to play.
For option time frame, or even warrants whose mother shares are active and ranging, a 6 month period will be sufficient for you to make good investments. Go for US options and you can really make a bundle if you dare to risk some capital.
i was thinking about this strategy but I thought it would not work with Singapore Warrants, Sometimes warrant selection is limited with different gearings and strike price/date.
What kind of time frames you use, and how do you decide the strike price ?
keepnosecrets ( Date: 17-Sep-2009 14:39) Posted:
Yes. If you can predict well you can make big amt in warants and options, esp oversea market options. If you play our singapore warrants, the chances of winning/profiting are very low. Unless you know how to play by buying and hedging two trades, call warrants and put warrants at the same time. The reason for buying (straddling) the two is because both the call and put will expire at a future date, probably same date or near one to other. The linear progression and the fluctuation in the mother share causes one of the warrants to move up and the other to move down. So take a profit if sufficient to cover the loss of one while waiting for the other to correct or make further profits for you.
soulcries ( Date: 17-Sep-2009 14:32) Posted:
thanks beckleong and keepnosecret...
i wouldnt say i a very experienced player/trader but definitely not a newbie.
basically,i can predict prices ,70% all of the time i get it right so i may use it to my own advantages.
i have heard that if u predict prices u should play option and as well as future |
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If you play our singapore warrants, the chances of winning/profiting are very low. quoted
good advices,with which what i heard was also the same...people just gamble.but i need to understand every single detail before i commit into warrants.i guess option such as hedge option is necessary to safe guard yr financial security.
bascially if u say about oversea warrants, i would say that i not familiarise their mother shares...
basically i am a part time trader strongly on technical analysis.
i use my very own leading macd line(i modify) and lagging macd line,stochastic fast & slow,RSI/MFI,bolinger bands and intraday tactics(my own belief) combine with elder index to predict prices,but i still learning frm it...
keepnosecrets ( Date: 17-Sep-2009 14:39) Posted:
Yes. If you can predict well you can make big amt in warants and options, esp oversea market options. If you play our singapore warrants, the chances of winning/profiting are very low. Unless you know how to play by buying and hedging two trades, call warrants and put warrants at the same time. The reason for buying (straddling) the two is because both the call and put will expire at a future date, probably same date or near one to other. The linear progression and the fluctuation in the mother share causes one of the warrants to move up and the other to move down. So take a profit if sufficient to cover the loss of one while waiting for the other to correct or make further profits for you.
soulcries ( Date: 17-Sep-2009 14:32) Posted:
thanks beckleong and keepnosecret...
i wouldnt say i a very experienced player/trader but definitely not a newbie.
basically,i can predict prices ,70% all of the time i get it right so i may use it to my own advantages.
i have heard that if u predict prices u should play option and as well as future |
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thanks
i have used his elders index quite some time,and found out quite good
beckleong ( Date: 17-Sep-2009 14:21) Posted:
If you are interested to know more, there's a book by Alexander Elder, Trading for a living. Useful book for newbies. Warrants, options, futures, basic charting, everything you shld know on investment...
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Yes. If you can predict well you can make big amt in warants and options, esp oversea market options. If you play our singapore warrants, the chances of winning/profiting are very low. Unless you know how to play by buying and hedging two trades, call warrants and put warrants at the same time. The reason for buying (straddling) the two is because both the call and put will expire at a future date, probably same date or near one to other. The linear progression and the fluctuation in the mother share causes one of the warrants to move up and the other to move down. So take a profit if sufficient to cover the loss of one while waiting for the other to correct or make further profits for you.
soulcries ( Date: 17-Sep-2009 14:32) Posted:
thanks beckleong and keepnosecret...
i wouldnt say i a very experienced player/trader but definitely not a newbie.
basically,i can predict prices ,70% all of the time i get it right so i may use it to my own advantages.
i have heard that if u predict prices u should play option and as well as future
keepnosecrets ( Date: 17-Sep-2009 14:14) Posted:
Newbies, you are lucky to have forumers who unselfishly give their knowledge and experience. Warrants is like buying 4D or toto. You have limited chances to hit, and very difficult to win big prizes. Remember there is no return of money if you never hit a prize? Same with warrants, it expires about the draw. |
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it is more riskier than shortselling,or even naked shortselling,or a normal option...
dun have life to play
aleoleo ( Date: 17-Sep-2009 14:22) Posted:
play index warrant, HSI the most exciting one .... you will win BIG, of course you may loose big also......
Warrant for life ~~ |
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thanks beckleong and keepnosecret...
i wouldnt say i a very experienced player/trader but definitely not a newbie.
basically,i can predict prices ,70% all of the time i get it right so i may use it to my own advantages.
i have heard that if u predict prices u should play option and as well as future
keepnosecrets ( Date: 17-Sep-2009 14:14) Posted:
Newbies, you are lucky to have forumers who unselfishly give their knowledge and experience. Warrants is like buying 4D or toto. You have limited chances to hit, and very difficult to win big prizes. Remember there is no return of money if you never hit a prize? Same with warrants, it expires about the draw. |
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play index warrant, HSI the most exciting one .... you will win BIG, of course you may loose big also......
Warrant for life ~~
If you are interested to know more, there's a book by Alexander Elder, Trading for a living. Useful book for newbies. Warrants, options, futures, basic charting, everything you shld know on investment...
My hands type faster than my thoughts? Sorry for typo. If you buy warrants and the strike price is exceeded by the mother share moving up, then your warrant prices will move up too, but if the mother share is below the warrant excercise price, then the warrant beccomes worthless.
keepnosecrets ( Date: 17-Sep-2009 14:16) Posted:
Sshh. After the draws, you money no more. For warrant after expiry dates, no more. But if you are lucky, should the price of warrants can shoot very high if their mother shares move beyond the excercise price. |
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Sshh. After the draws, you money no more. For warrant after expiry dates, no more. But if you are lucky, should the price of warrants can shoot very high if their mother shares move beyond the excercise price.
Newbies, you are lucky to have forumers who unselfishly give their knowledge and experience. Warrants is like buying 4D or toto. You have limited chances to hit, and very difficult to win big prizes. Remember there is no return of money if you never hit a prize? Same with warrants, it expires about the draw.
Warrants, options or future are not recommended for newbies. For warrants/future, unless you are confident that the price will shoot up else don't invest. Pro investors usually buy options to safeguard themself when they invest in a stock. Its like buying insurance to cover.
soulcries ( Date: 17-Sep-2009 13:55) Posted:
Warrants,option and futures
who have play them before ...
i only know a little on them.warrants theres is an expiry date same as option.there got 2 option call option(buy) and put option(sell).
have not traded any of these,wish to know more,any one is good at it or experience before? |
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Warrants,option and futures
who have play them before ...
i only know a little on them.warrants theres is an expiry date same as option.there got 2 option call option(buy) and put option(sell).
have not traded any of these,wish to know more,any one is good at it or experience before?