With Public Bank's share price closing at RM9.70, PBBANK-CD is currently having a premium of 13.40%. Tenaga which closed at RM10.90, would give its cw TENAGA-CF a premium of 14.68%. Since the market has been quite weak lately, a possible gain of one or two cents would do good.
China Communication Construction Corporation (1800) closed at HKD15.52;CCCC-C2 ---> 11.08% premium.
CCCC-C3 ---> 37.85% premium.
Hong Kong Exchange (0388) closed at HKD125.40;
HKEX-C3 ---> 27.87% premium.
CCCC-C3 and HKEX-C3 are both at extremely high premiums. At the current CW prices, the underlying shares (CCCC and HKEX) should trade above HKD 21.40 and HKD160.30, respectively. Well, that's a long way to go.
Since call warrants have limited life span, it may not wise to hold them at this level.
Both CWs will be traded on the negative side tomorrow.
Time to cover some losses:
For those who have subscribed for CCCC-C3, you can dispose the C3's and swap to C1's.
At present, CCCC-C1 is only having a premium of 1.09%. And if the underlying share price was to move up 5% (+78 cents) from HKD15.52 to HKD16.30, its CW should be valued at RM0.275 (more than 24% gain).
Another CW that is worth taking a look is ICBC-C3, which is currently at 2.58% premium.
A 5% increase (+24 cents) on the underlying share price from HKD4.72 to HKD4.96 can lift the CW's price to RM0.13 (+24% gain).
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