Why create put and buy warrants

First, the risk of the combination of "underlying stock + warrants" held is different. Due to the different sensitivities of call warrants and put warrants to the underlying stock, as the stock price of the underlying stock rises, the ** of the call warrant rises, and the **** of the put warrant. From the perspective of the sensitivity of the "underlying stock + warrant" portfolio, the call warrant will exacerbate the systemic risk of the portfolio, while the put warrant will hedge part of the risk of the stock price fluctuation.

Second, the compensation for shareholders of tradable shares is different. When the stock price is **, the **** of the put warrant will compensate the shareholders of the tradable shares, thereby reducing the break-even point of the shareholders of the tradable shares; The call warrant can give the shareholders of the tradable shares a share of the possible future performance growth, but if the stock price is discounted, it will not give the shareholders of the tradable shares much compensation in the short term.

Third, the maturity value is different. Since the warrants included in the current share reform plan are delivered by ** settlement, this will have a significant impact on the maturity value of the warrants. For put warrants, if they are about to expire, the warrant is in-the-money, i.e.

If the stock price is less than the exercise price, the holder of the warrant will inevitably buy the underlying stock in order to exercise the warrant, and the buying pressure may cause the stock price to move closer to the exercise price, thus making the warrant lose its value; In the case of call warrants, if they are in-the-money warrants during the expiration period, the holder only needs to prepare cash to buy ** from the major shareholder at the exercise price, without affecting the share price of the outstanding A shares. It's just that after exercising, the market can be circulated ** suddenly increases, and investors want to take profits as soon as possible, the underlying stock will encounter short-term selling pressure, and the stock price will inevitably be **, so that investors will suffer losses.

Finally, put warrants allow investors to construct a variety of portfolios, while call warrants can only be used as a tool for speculators to speculate in the absence of a short-selling mechanism in the market.

**What does the put warrant of WISCO shares cancelled by the company mean.

After the warrants created by the company in accordance with the regulations are listed and bought, he can repurchase them from the market and cancel them when the warrants are substantially large. In this way, he can both gain and avoid exercising his rights.

According to the different rights to buy or sell, it can be divided into call warrants and put warrants, also known as call warrants and put warrants.

The holder of the call warrant has the right to sell the underlying to the issuer within a specified period or maturity date as agreed, while the holder of the put warrant has the right to sell the underlying.

Subscription warrants. The value of the underlying asset rises, while the value of a put warrant rises as the underlying asset** decreases.

To put it so complicated, what does a call warrant mean? For example, if you spend 50 yuan to buy 100 shares of A**, the exercise date is August 1. Exercise** is $5.

That is, by August 1st, you are eligible to buy the 100 shares for $5.

If on this day, the market price of the stock is 8 yuan, others to buy 100 shares to spend 800 yuan, and you can use 500 yuan to buy 100 shares this day, if you ** warrants per stock yuan, then you spent a total of 550 yuan, of course you are cost-effective. If you actually buy it, this act is called exercising.

But if on this day, the market price of the stock is 4 yuan, of course you will not buy it with 5 yuan shares, then the 100 shares of call warrants in your hand are waste paper. You must have chosen to forgo exercising. However, you will lose 50 bucks.

What does put warrant mean, what is put warrant, although **bus does not recommend ordinary investors to speculate on warrants, this does not mean that we do not recommend the knowledge of warrants. There is also an impact of warrants on **.

Put warrants are put warrants, that is, put options, specifically, on the day of exercise, investors holding put warrants can carefully sell the corresponding ** to the listed company according to the agreement. For example, on the day of the exercise of the new steel vanadium, investors holding put warrants can sell the corresponding new steel vanadium ** according to the ** yuan, regardless of whether the stock price of the new steel vanadium is 2 yuan or 8 yuan at that time. If the ** at that time is 2 yuan, then the value of the put warrant is the yuan, if the ** at that time is higher than the yuan, then the put warrant is worthless.

When the stock price is higher than the exercise**, the call warrant investor will make a profit from the stock price**, and when the stock price is lower than or equal to the exercise**, the call warrant fee will be lost, and the call warrant investor hopes to profit from the ****. On the other hand, when the stock price is lower than the exercise**, the investor will gain from the decline in the stock price, and when the stock price is higher than or equal to the exercise**, the investor will lose the cost of the put warrant, and the put warrant investor hopes to short** and profit from it.

The risk of a put warrant depends mainly on factors such as the direction of the underlying stock's future price movement, time value, and implied volatility. For put warrants, the biggest risk comes from the warrant caused by the large amount of the underlying ** in the future.

Put warrants provide investors with the greatest convenience in that they provide a possibility to make money in the market. Bearish investors can only put warrants and have no other hedging strategy, and the biggest risk that investors need to bear is the put warrants. Due to the leverage effect of the put warrant itself, investors can hedge their risk by control**.

Of course, traders who are more speculative can realize the leverage function of warrants by increasing **.

Theoretically, put warrants should be issued by those blue chips with guaranteed future performance growth, and the companies that hold such ** are often institutional investors with short-selling power.

From the experience of the Hong Kong warrant market and other markets, put warrants do not pose an impact on the underlying stock price. For the mainland market, if investors go short, they will take advantage of the interests of the company's majority shareholders, which means that the majority shareholders will pay a higher consideration, which also makes the company have to make a prudent choice when issuing such warrants. In other words, they will also be issued by companies that are confident in their company's prospects and whose share price is currently significantly undervalued.

A further question is, how long does the "insurance period" need to be? It depends on how investors view the market outlook. The purpose of the put warrant insurance strategy is that investors expect the underlying stock to fall "in the short term" but to move upwards in the "long term".

If investors believe that the "short-term" correction of the stock price is coming to an end, they can sell the put warrant first to make a profit, and then make more profits when the stock price recovers.

This does not matter the question of low exercise price, the subscription is to purchase the specified ** at the time of exercise as agreed, if the warrant is not exercised, it is a piece of waste paper, and the put right is exercised to be sold at the specified **, and the right is also a piece of waste paper. To put it simply (theoretically) if there is a put warrant, and you expect the stock price to fall when the warrant is exercised, then you can put the warrant and buy the call warrant instead.

Don't touch the warrants, there are eighteen layers of hell inside the trap.

The "**Leaderboard" has a large number of answers to questions about this kind, you can check it out!

Many investors may not know much about warrants. In fact, a warrant is a right of choice. In an agreed period, investors can buy or sell this thing with a certain amount of **, but a certain deposit must be given in advance; If you feel that the sale is not cost-effective at this time, you can also not exercise this right, but the deposit will not be refunded.

Specifically, warrants are further divided into call warrants and put warrants.

The call warrant indicates that the investor can purchase the agreed **after a certain period of time**. For example, the call warrant of Yili shares indicates that investors can buy 1 share of Yili shares at 8 yuan on November 8 this year. A put warrant indicates that the investor can sell at the agreed price after a certain period of time.

For example, the put warrants of Salt Lake Potash indicate that investors can sell to ** company at ** per share on the 25th of this month. For the call warrants, the underlying stock is continuous, and the warrants are also continuous**; In the case of put warrants, it is the opposite, the underlying stock is constantly **, and the ** of the warrant is constantly **, so that it becomes negative. For example, the put warrant of Salt Lake Potash Fertilizer, today's ** price is Yuan, next Friday is the last trading day, and the ** of its underlying Salt Lake Potash is currently Yuan, that is to say, only when the Salt Lake Potash stock price falls back below the yuan before next Friday, this put warrant warrant is valuable, if the investor exercises the right at that time, each warrant will lose more than 30 yuan, of course, the investor can not exercise the right, but you have to lose the deposit of each yuan.

1.Rights of the Holder.

The holder has the right (but not the obligation) to purchase a special fixed number of underlying warrants from the issuer at a pre-agreed ** price within a certain period of time.

2) Put warrants.

The holder has the right (but not the obligation) to deliver a specific amount of the subject matter to the issuer in a pre-agreed amount over a certain period of time.

2.Returns at maturity.

1) Call warrants:

Warrant Settlement** Strike Price) Exercise Ratio*

Costs associated with exercising the option are not taken into account.

2) Put warrants.

Strike Price Warrant Settlement**) Exercise Ratio*

Costs associated with exercising the option are not taken into account.

One is to buy up, and the other is to buy down.

Or say that one is short and the other is long.

The significance of the warrant is that it can be purchased at the agreed time according to the face of the ticket, which is very similar.

If you apply **, it is easy to understand.

A person if he has soybeans in his hands. Of course, he hopes that the higher the soybean **, the more beneficial it is for him, but on the other hand, if a person wants to buy soybeans, then he hopes that the lower the soybean ** is, the lower he can buy.

Put warrants are when it comes to trading, which requires you to sell your own hands **according to the agreement**. Then the higher the speculation on the face of the warrant, the more beneficial it is for you. Otherwise it's the other way around.

That's the basic principle.

A put warrant is something that has no real value. Call warrants are something of value.

This is due.

You can exercise your rights.

To exercise his rights is to replace him with **.

I've done it before.

In layman's terms, a call warrant is the right to **** at the exercise price on the exercise date.

A put warrant is the right to sell ** at the strike price on the exercise date.

Warrants do not have to be exercised, and in many cases the true value of the warrants is 0 or less than 0

Warrants and put warrants are both options issued by listed companies. Expired and void!

Both types of warrants specify different exercise times and exercise periods**, as well as holding and exercise periods.