Tuesday, October 09, 2007


Singtel Daily Chart

Has everyone forgotten about Singtel-C1? It took me some effort to get into this counter. Singtel chart shows that it is moving up in a tight channel. Currently, Singtel-C1 is really lagging behind. With today's close, Singtel-C1 premium is -4%! The exercise price is in MYR but since SGD is appreciating against MYR, the exercise price in SGD has decreased. Why does it not trade at 0% premium (at least)? Maybe because Singtel tend to have a large swing of around 10 cents per day. This in affect means that if Singtel-C1 to trade with 0% premium, then it will also swing in the region of 20%. So quite dangerous if one gets the wrong entry.

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