STI 2600SGAeCW060928   

Warrant in POEMS Help

DBS thinks STI is likely to correct until end Aug (if not Oct!), to levels of 2100-2150 before recovering by year end to 2560.

UOB also has similar view but differs somewhat in the highs & lows ..

 

Thanks for the reply.
I realized STI2600DBePW061228 is a Put Warrant, so that's y it's increasing...
So I guess many don't think the STI will hit 2600 by September then...

 

Some warrants allow you to buy into the mother-share upon expiration. This warrant, however, is pegged to STI (therefore has no mother-share to convert to) & exercise price is $0.00!? i would think it will become worthless too (oops) ..

Difference between the 2 warrants in question, one is a CW (Call Warrant). The other is a PW (Put Warrant). CWs tend to increase in price as the mother-share increases. PWs go the other way.

i am new to warrants but am keen in STI PWs & this is what i have found out so far. Kindly correct me if i am wrong!

 

A warrant gives you the right to purchase equity a specific price within a certain time frame.

So if it expires in September, it will be worthless. If september is approaching, you should either sell your warrant or exercise it.

 

Hi,
I bought STI 2600SGAeCW060928 in POEMS and wonder what will happen when the warrant expires on September.
Will the warrant becomes totally useless on its expiry date?
If that's the case, wouldn't everyone be rushing to sell their warrant if the STI couldn't reach 2600 during that period?

Also,why do I see an increment in STI 2600 DBePW061228 and a decline in STI 2600SGAeCW060928 although both rely on the STI?

Please advise. Thanks!