Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

FSR CL Warrant

Reply
neophambuka432
Occasional Contributor
Is FSR CL call warrant ripe for the picking due to the over reaction in the FSR share price? {cue Pravin Gordon saga}
0 Kudos
3 REPLIES 3
Preston
Super Contributor
No, breakeven is +/-R52. Entire premium subject to time decay. Buy the actual share.
0 Kudos
neophambuka432
Occasional Contributor
Thank you Preston.Helps a lot.Im a novice and wanted to ask how can I better time my entries? Are there formulae, strategies or "signs" I can put in place or watch out for?
0 Kudos
Preston
Super Contributor
1)Cross reference the exercise price to the chart of FSR. Usually these exercise price are set at prior resistance. 2) (Exercise price+ option price)- Current market price = Value of share appreciation. Is that appreciation sustainable in the current market enviroment and given the current sentiment toward the banking sector. 3) Always protect capital, if exercise price is unreasonable, your entire option premium will be subjected to time decay. 4) Never pay a call warrant that is out of the money. (omo)
0 Kudos