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Accompany you to make money in Hong Kong stock market!
Hello, everyone, I am the representative of Niuniu class!
Today is the 14th lecture in a series of courses "20 lectures on Hong Kong Stock Investment"!
Niu friends, please pick up the small bench and come to class together.
Abstract: this lesson will tell you what a nest wheel is, how to buy it and the investment risk of it.
The derivatives trading in Hong Kong stock market has the characteristics of high yield and high risk.
Tencent, for example, has seen its share price soar 45 per cent since its low on March 18. This increase is substantial enough for ordinary investors, but suppose you are bullish on Tencent and buy and hold the subscription round with him as the target in the same period.$Tencent Moto 14 Buy A.C (18693.HK) $，Then the rate of return will be an amazing 423%!
Of course, while emphasizing that the round trip can bring excess income,Investors can't ignore the fact that it carries high leverage, high volatility and high risk.。
So what on earth is a nest wheel? Today, the class representative will bring you to study.
What is a nest chakra
Wo Lun gets its name from the homonym of English warrants.It is a kind of stock warrants.When you hold a ship, you have the "right" to buy / sell its corresponding stock at a specified price on a specified date, which is usually priced and issued by an investment bank.
Give me a chestnut!
Suppose the market price of Apple Inc is 100 yuan per bag. At this time, the seller proposed that the buyer could buy a voucher at a price of 10 yuan, and the two sides agreed that the buyer could buy Apple Inc at 120 yuan per bag one year later. If the buyer predicts that the price of Apple Inc will rise in the future and is willing to buy this voucher, and the price of Apple Inc is higher than 130 yuan a year later, the buyer can make a profit by buying Apple Inc at a price of 120 yuan.
On the contrary, if the price of Apple Inc is less than 130 yuan, the buyer will not use this voucher and the seller will make a profit of 10 yuan.
The above Apple Inc's purchase certificate can be regarded as a kind of subscription ship.The nest wheel can be divided into two types: CALL WARRANTS and PUT WARRANTS.In addition, after the Wo Lun is issued, it can buy, sell and circulate freely in the market, and investors trade vouchers according to the judgment of the future price of the Wo Lun.
Finally, emphasize one point.Although Wanlun represents a right, it is a virtual right.Because whether it is a subscription certificate or a sell certificate, most of them are delivered not in kind but in cash on the due dateMost investors only see it as a tool to win the price difference.。
The following picture shows the main structure of Hong Kong Exchanges and Clearing's financial products, and Wo Wheel is the derivative warrants under the structured securities of the HKEx.
Second, how to use and purchase the nest wheel
First, the general naming method of Xiawo wheel is introduced in order to$Tencent Moto 14 Buy A.C (18693.HK) $As an example:
1) Tencent is the name of the stock.
2) Motors represents the issuer
3) Fourteen represents the year and month of exercise of the wheel respectively. That is, this nest ship will exercise power in April 2021.
4) in the last word, buy / sell represents whether the turn is to subscribe or sell
5) the last letter A/B/C/D means that UBS is likely to issue a round of exercise against Tencent at the same time, but under different conditions (such as the exercise price). Use ABCD to distinguish
The contents in parentheses: "@" indicates delivery in cash at maturity, "*" indicates delivery in kind (stock) at maturity (basically does not exist); "E" indicates European type, if "X" indicates a special or non-traditional nest wheel (see its terms for details); "C" indicates a subscription certificate, and "P" indicates a sell certificate.
To sum up: the name of this nest wheel means: class An issued by JPMorgan Chase & Co, a subscription nest wheel with Tencent as the target, due in April 2021 and delivered in cash.
Based on the naming method, here is a brief introduction to the tips for nest wheel selection.：
The direction of stocksAccording to the rise and fall of the stock, buy and subscribe for the bullish, buy and sell for the bearish
Choose the exercise priceIf you think the stock price will soar in the short term, you can pay attention to the subscription certificate of 10% of the price and 15% of the exercise price. If you think that the stock price is only rising repeatedly, you should choose the round outside the smaller price or within the price.
Select expiration dateUsually choose the ferry that expires for 3 to 9 months, and the time is more moderate
Generally speaking, the higher the price or the nearer the maturity date, the higher the actual leverage, which represents high return and high risk.
Street to goods ratioThe volume of street goods is that in addition to the goods held by the issuer, the more the number of ships held by investors, the more the volume of street goods, indicating that the market is more liquid.
Hit and draw.As the name implies, hit and Point is the break-even point of a nest wheel, that is, the cost of the round (the current price of the wheel) plus the exercise price.
Third, the risk of the ferry
Like Tencent at the beginning, a small change in the price of the underlying asset (stock index, etc.) can have a great impact on the round price (that is, royalty).
The nest wheel can bring excess returns for investors.But it also carries high leverage, high volatility and high risk.
Assuming that some investors are bearish on Tencent, they judge that his share price will fall below HK $400 in August and buy and hold between 2020-3-18 and 2020-6-26.$Tencent Faxing zero eight sales B.P (22445.HK) $As a result, the round price of its transactions fell by more than 90%.
To sum upMost investors regard the nest wheel as an investment tool to win the price difference, which gives the investor the right to buy / sell its corresponding stock and index at a specified price on a specified date, but this is also a virtual right. because when the nest wheel expires, it is often delivered not in kind but in cash.
In addition, because the wheel carries high leverage and high risk, it can magnify both gains and losses, especially the transaction of the wheel itself contains more humanity and more games, investors need to be cautious.
That's all for today's sharing!
Welcome to the message area for interaction!
The class representative will select 8 participants in the discussion area and give 188 Niuniu points!
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Let's not part until we meet again!
Edit / gary lydiali