Wow! KLCI is now at all time high region. This time, the leader is in the Trading&Services sector. Finance, construction, property, plantation and others are not the leader in this upward move.
I still don't believe this is going to last. In my opionion, all of this is to prepare the background for FGVH listing.
Over 20 new call warrants will be listed on 20 June 2012. The interesting thing is Gasmsia call warrants: CA - CI! In total 9 call warrants for Gasmsia will be listed on the same date. How to sell to the public? This is just a case of over supply.
Other new call warrants are from SKPetro, MAS, Airasia, Mediac, MSM, E&O, BJCorp, Maybulk, CSL and FB (Facebook).
All data has been updated in our Bursa Malaysia, HKSE and SGX Warrant Calculator.
I'm monitoring HSI because when the bear market comes, you can protect yourself (i.e. make money) by buying HSI put warrants. There are a lot of put warrants, so it is good to pay attention to this area.
HSI Weekly Chart
Very apparent pattern show by HSI Weekly chart: Rising wedge
pattern broken to the downside. A big bear indicator. Expecting this to rebound towards 20,000. Based on the chart, I intepret that HSI is already in a bear market.
STI Weekly Chart
No chart patterns in STI weekly chart. However, the EMA is pointing downwards. Expecting a rebound towards 2900. Looking at the monthly chart (not shown), I intepret that STI is also in a bear market.
Very hard to intepret the KLCI weekly chart. Stochastic and MACD are moving in the opposite direction. The immediate direction is up. However, there is no strength in this movement. So, I'm expecting this upward movement to stop and reverse direction.
The strike price and ratio for YTL & TAANN call warrants has been amended based on the announcement in Bursa Malaysia. Please note that numbers shown has been rounded to 2 decimal point. I have double checked, and the entered data is correct.
This stock is very interesting. Moving averages indicates that it is on a uptrend. Currently challenging the top of the resistance. Check out the call warrants. Most are reasonably priced. If it breaks to the upside, then by theory, the projected upside is about RM0.35 @ RM2.65. At this price, if SKPETRO-CD trades at 0% premium, then it will trade at 0.25 or an upside of 50% at current price.
So, I have shown to you have to use the Warrant Calculator.
Some traders like to use option valuation to value them. My personal opinion, forget about the Greeks (Alpha, Beta, Gamma). It's only good for someone else thesis.
I think some of you may have notice that the Bursa Malaysia Warrant Calculator now contains data from Singapore and Hong Kong Stock Exchange warrant. So, for you warrants addict out there, I hope that you'll find this beneficial.