Jan 05 2007
There’re 4 (four) new call-warrants being listed today in Bursa Malaysia (KLSE) which attached to AirAsia Berhad (KLSE : AIRASIA, stock-code 5099), Astro All Asia Networks (KLSE : ASTRO, stock-code 5076), Telekom Malaysia Berhad (KLSE : TM, stock-code 4863) and YTL Corporation Berhad (KLSE : YTL, stock-code 4677) issued by CIMB (Commerce International Merchant Bankers), an investment bank of Bumiputra-Commerce Holdings Berhad (KLSE : COMMERZ, stock-code 1023)
The four call-warrants are being listed as AIRASIA-CB (stock-code 5099CB), ASTRO-CB (stock-code 5076CB), TM-CC (stock-code 4863CC) and YTL-CA (stock-code 4677CA). Are you confused with all those acronym of CA, CB and CC? Well, don’t take it too seriously as it’s just another way to distinguish one call-warrant from another but with different Exercise-Price or Strike-Price and Exercise-Price or Conversion-Price. In fact the codes here are pretty straight-forward compare to Options Trading in U.S. (call-warrant is to some extend similar to Call-Options)
In U.S. an option-able stock might have very short expiry-cycle with 4-month interval from one another. Add this to the different strike-price available and you have a massive complex but flexible option system at your trading disposal. For example, Google’s Jan-2007 480 Call’s code is “GOPAI” and Jan-2007 490 Call is “GOPAK” whereas different month such as Mar-2007 480 Call’s code is “GOPCI” and so on.
The four call-warrants are being listed as AIRASIA-CB (stock-code 5099CB), ASTRO-CB (stock-code 5076CB), TM-CC (stock-code 4863CC) and YTL-CA (stock-code 4677CA). Are you confused with all those acronym of CA, CB and CC? Well, don’t take it too seriously as it’s just another way to distinguish one call-warrant from another but with different Exercise-Price or Strike-Price and Exercise-Price or Conversion-Price. In fact the codes here are pretty straight-forward compare to Options Trading in U.S. (call-warrant is to some extend similar to Call-Options)In U.S. an option-able stock might have very short expiry-cycle with 4-month interval from one another. Add this to the different strike-price available and you have a massive complex but flexible option system at your trading disposal. For example, Google’s Jan-2007 480 Call’s code is “GOPAI” and Jan-2007 490 Call is “GOPAK” whereas different month such as Mar-2007 480 Call’s code is “GOPCI” and so on.
If you noticed the opening price of AirAsia-CB (for example), it gap-up or jump from its’ issue price of 0.225 ringgit. Let’s take a snap-shot of the price:
-
When the share price of AirAsia = 1.58, AirAsia-CA = 0.35 and AirAsia-CB = 0.585.
-
The Exercise/Strike price of AirAsia-CA = 1.96, so stock price for AirAsia-CA of 0.35 is entirely consists of time-value (expired on 19-Oct-2007) since its’ already out-of-money.
-
The Exercise/Strike price of AirAsia-CB = 1.45, the intrinsic-value is 0.13 (1.58 minus 1.45) leaving the 0.455 (0.585 minus 0.13) as the time-value. Hence, AirAsia-CB trading share-price of 0.585 consists of both intrinsic and time-value.
But why AirAsia-CA which has a longer expiry-date commands a lower time-value than the newly launched “CB”? It could be due to other factors such as IV (Implied Volatility) and other Greek’s language that might scare the head out of you such as Delta, Gamma and Theta etc. Such is the exciting world of option trading – or rather call-warrants.
# TIP: For more detail-data related to Bursa Malaysia (KLSE) call-warrants, you can visit OSK188 at Warrants Pricing Table
Other Articles That May Interest You …
|
|
January 5th, 2007 by financetwitter
|
|
|
|
|
|
|
Comments
Add your comment now.
Leave a Reply