SPC   

SPC

geojam,

Think this is how it works on European Call Warr.

Say Strike @ 4.50. Ratio 1Share : 4 warr

You bought 4000 warr @ 20 cts ...cost  $800.00

Upon closing price of share on expiry date is 4.70. Difference of closing price and strike is 20cts....Warrant issuer will pay you 20 cts for every 4 warrants (ratio)....i.e 1000 x 20cts = $200.00.

Your loss is $800  - $200 = $600

If closing price upon expiry is less than 4.50...you get nothing.

Your loss is $800



Because of the gearing of the warrant, say you bought at 5cts, then the share goes up to $5.00 before expiry. Technically, the value of the warrant is

(5.00 - 4.50)/4 = 12.5 cts.

If the mkt feels the mother share has more upward potential, buyers may offer a premium..say 15 cts. Conversely, if mkt feels the trend is down.....mkt price of warr may be 10 cts. So, if you sell your warrant in the open mkt, you stand to profit. 

So, in giantlow's case, he bought at 5cts. Technically, he will break even when SPC is 4.70..... (4.70 - 4.50)/4 = 5 cts ....assuming warrant mkt does not offer premium or discount.

 

Patience shall be rewarded.Be patient......... 

 

Giantlow

My knowledge of warrant is poor.

So when u buy the warrant,say 20 cents,and then they say the strike px is $4.50.That is all u need to do?Sit and wait until expiry date comes?

And on day of expiry,if share px like u said above S$4.5 they pay u cash otherwise money gone?

Simple as that?

Giantlow,u strke me as one  from ACS?am i rite?

Cheers

 

Finally my warants are coming back. Hope it can cross 20c

 

the "proper" way of shorting would be to use a Security Borrowing & Lending Account (SBL a/c) or Contract for Difference Account (CFD a/c)

 

[15:29 US TECHS: Commodities Outlook; Gold and Oil] Boston, February 23.

[Gold] is providing bulls what they need, having set a large range ($31) outside week higher and pushed side concerns arising from Tuesday"s break.  Having exceeded front-month highs just below $680 from mid-July 2006, upside objectives start at $700 on weekly and monthly charts and rise from there. Higher highs yet today will lead to firmer projections for next week and March. Intraday support starts at $687 Apr, then $683-84.
[Oil] has finally set new highs for the month.  A trend Intensity uptick is not out of the question on more substantial gains.  Apr futures have tapped against weekly resistance at today"s highs, and a monthly close past $62.37 Apr will send long-bearish monthly trends to neutral. If prices can"t rally that far, the hurdle drops sharply in March to about $60.75 to end that key time frame"s bearish outlook.  On continuous futures, oil reached its 200-day moving average today for the first time since last December 20.  This is mentioned, as that test marked the start of an enormous down leg which has been mostly retraced since mid-January.  Elliott wave counts have not ruled out the advance from January"s lows as being a 4th wave correction that could lift as high as $63.50-64.00 before heading back down. Joel.Marver@thomson.com

 

thank you, thank you. All the big brothers giving xiao di advises. Now it makes sense to me after shplayer explains about the delivery of shares, T+3. Clear now! This will poise dificulties to the shortist, and yet there are still many shortist around.

 

 

yup yup. shplayer is rite.



simple logic - u cannot sell what u dun own

 

idesa168,

Think it got to do with delivery of shares.

Say you sold today (Fri)....then the byer will expect to receive his shares by T+3....i.e. on Wednesday.

But you buy back on Mon, of which share you will only have in your possession on T+3 from Mon...i.e. Thur.

So, on Wed, you don't have any shares to deliver to your buyer....that will cause a problem.

 

Thanks iPunter



But I still don't understand why we cannot short for 2 days. Say shorted 10 lots of SPC at $4.54 but mkt close at $4.56 today. Then if mkt opens the next day at $4.44, I buy in. This way is only fair for shortist, T+3.

 

If you short-sell in the morning or anytime during the day, you must buy  back all the same shares by the end of the day before market closes.

If you don't do that, your broker is not responsible for your actions.

Then on T4, but not before, SGX will do a forced buy-in on your behalf at 2 bids above the asking.

To do proper shorting, you can take advantage of POEMS great CFD service. 

 

If one has not shorted, then how will one becopme a better trader?... :)

 

Yes Nicky, that's the spirit. Loose today, there is next trading session to battle. Hope your damage today is not significant. Leave some bullets for the next session.



Just curious, about shorting ( I have not personally tried before), you cannot bring your short to the next trading day? I do believe if we contra the trade, we have 3 days to settle the deal. Didn't that principle apply to shorting?

 

lan lan...covered back at 4.54 !! lost this battle :P

I will be back !! hee...

 

boohhow65... you are on the right track...

The chart indicates the trend had definitely reversed long ago.

Any technician worth his/her salt will, based on his tool (the chart), dare tell you straight that and without reservation, (and of course with humility) that SPC is no longer on a downtrend.

 

Its a good start but need to overcome previous 4.6 physiological support/resistance.  I still have mine last 4.4 vested lots.

The same bird that told me it will move has also said that next week move will be spiking. :)  Again, take this a side noise.

 

I think this is the most relevant news I heard so far for this stock

Oil hovers at $61 after gains on US fuel stock draw 23 Feb 2007 11:11

By Osamu Tsukimori TOKYO, Feb 23 (Reuters) - Oil prices were little changed just below $61 on Friday, after touching a more than seven-week high a day earlier as a sharp fall in U.S. fuel stocks and mounting anxiety over Iran's nuclear ambitions spurred buying. U.S. crude for April delivery <CLc1> was trading 9 cents lower at $60.86 a barrel by 0244 GMT, after gaining 88 cents on Thursday and hitting a peak of $61.25, the highest since Jan. 2. London Brent crude <LCOc1> for April was down 1 cent. Prices have climbed nearly $2 in two days, boosted first by pipeline and refinery problems in the United States and on Thursday by news of an unexpectedly deep draw on fuel stocks. U.S. distillate inventories, including heating oil, fell by 5 million barrels last week, the biggest weekly drop since September 2005 and much larger than the average 2.9 million barrel draw analysts had anticipated, data showed. [EIA/S] U.S. gasoline supplies unexpectedly fell 3.1 million barrels, sending NYMEX RBOB gasoline futures <RBc1> nearly 3 percent higher as traders began to fret about summer supplies. Crude stocks rose a larger-than-expected 3.7 million barrels. "This data was quite strong, especially for heating oil," said Dariusz Kowalczyk, chief strategist at CFC Seymour Ltd. in Hong Kong. "The risk is to the upside if the Iranian situation deteriorates a little bit, so just in case you buy." Oil traders' fear of a disruption in Gulf supplies grew this week after the United Nations nuclear watchdog said Iran failed to meet a Feb. 21 deadline to suspend uranium enrichment. Washington said major powers would meet next week to start writing a new Iran sanctions resolution. [ID:nL22475863] A string of U.S. refinery problems and other operational snags also risks straining fuel supplies in the top consumer. A fire over the weekend at Valero Energy Corp.'s <VLO.N> 170,000 bpd refinery on the Texas panhandle was expected to keep the plant shut for several weeks. Several other refineries were shut for repairs and regular seasonal maintenance. TEPPCO <TPP.N> told customers on Thursday it could restart the downed portion of its 240,000 barrels-per-day refined oil products pipeline by Friday morning, pending regulatory approval -- a day sooner than initially expected. [ID:nN22185965] OPEC next meets in Vienna on March 15 to discuss output levels, but most members, including top supplier Saudi Arabia, have indicated that the cartel will leave output unchanged. The group is on course to trim oil output in February by 500,000 bpd as members led by Saudi Arabia curbed supply further, consultancy Petrologistics said on Thursday. [ID:nL22442126] ((Reporting by Osamu Tsukimori, editing by Alex Richardson; Reuters Messaging: osamu.tsukimori.reuters.com@reuters.net; +81-3-3432-7391)) Keywords: MARKETS OIL

 

giantlw,

Oh, I see...in this case, you need 4.70 to break even then. This dosen't give you much room to manoeuvre. The issuer can manipulate the price on expiry so that they don't have to pay you.

Now, I recall why I did not want to get involved with this type of warrant. Its a 'heads you lose, tails I win 'game for the warrant issuers.

 

damn shortist