All PBBANK Warrant Trading At Negative Premium

At the end of year 2009 finally PBBANK broken the RM11.00 level to close at RM11.30 and now moving around RM11.20. They are 3 structure warrants issued by CIMB and OSK, now all 3 warrants trading in negative premium. In warrant the issuer will control the premium to get they profit so you may sometime see premium may move from 35% to -10%.

The warrants premium usually drop when the issuer note that they have sale out most of the warrant in they hand so if no one buy the warrant the premium usually at vary high. Example like PBBANK now due to all 3 warrants is Europe style so the warrant buyer can't convert the warrant before the maturity date so the issuer can control the price.

Buy warrants 1 rule is choose America style but issuer usually only issue America style is the mother share is speculative type, like PBBANK the issuer also vary smart so only had Europe style.

Stock Quote

KLCI Live Quotes Lookup Stock Code/Name Enter Stock Code/Name

Investment Idea

My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

Footer

Weblog Disclaimer: The information contained herein was obtained from sources believed to be reliable. However, we do not guarantee the accuracy and completeness of the report. Opinions expressed herein are subject to change without notice. This report is for information purposes only and should not be construed as an invitation, offer or solicitation to purchase or sell any futures product referred to herein. The Author may from time to time has an interest or position in the futures products or stocks mentioned. There is a risk of loss in trading stocks,futures & derivatives like products.

Bursa Malaysia (KLSE) Daily Info Edge Zone