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I don't understand.....

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barry_1
Super Contributor
....please some one explain to me why 77 traders today traded TOPSKP today and only two traders traded TOPSSKA.... Since the 26/june /09 the CALL has gone up by 155% and the PUT has gone down by minus 62%,surely better to have held the call the WHOLE TIME!Of course the charts confirm my veiw....By the way the PUT is getting perilously close to KNOCKOUT!....The PUT does not stay SHORT hardly long enough to make a profit every time it gains a couple of cents.
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24 REPLIES 24
Maggie
Super Contributor
Dont know. Could be this wind.
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Not applicable
Perhaps the massive 15x gearing on the put is attracting the punters. Of course, the gearing is only so high because of the imminent risk of Knockout!
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barry_1
Super Contributor
yeh,i'm sure this is the best explanation i'll receive,good answer
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barry_1
Super Contributor
yes ,logical answer,had not thought of that.
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Not applicable
Well, someone is going to get hurt tomorrow - dow just broke 2009 highs. I think tomorrow is going to be a big green day
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Maggie
Super Contributor
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jack12
Super Contributor
and Gold at 1000, Brent up, plat up, HS up
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TOPIX
Regular Contributor
Perhaps 77 traders are getting out of their positions for the exact reasons you mentioned?? Remember the market maker buys back so you don't necessarily have new buyers - but no way of knowing.
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barry_1
Super Contributor
yes thought of that,just wondered why they were in that position as there were no real signals to go short in the previous days.
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Not applicable
does the warrant expire when it reach the set price 235000 or 0n the 1DEC?
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SimonPB
Valued Contributor
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TOPIX
Regular Contributor
Different strokes for different folks. I am sure a lot of folks trade their beliefs and call market tops notwithstanding the trend.
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Not applicable
simon-yes 235000 or yes 01dec
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SimonPB
Valued Contributor
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Not applicable
The punters are at it again this morning, with the warrant less than 400 points from "Knockout!". The prices seem to be on the high side of the spread, i.e. more are buying from the market maker than selling. Will "Knockout!" occur if the TOPI touches 23500 intraday, or does it have to close over this level?
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SimonPB
Valued Contributor
touch an die .. intra-day or whenever ..
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Russ
Super Contributor
Top 40 short warrants seem to be active today-see eg.topsbv.Interesting.
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barry_1
Super Contributor
Many traders "born" during the recession,to trading i.e. cannot seem to get into their heads that the up phases are getting to be stronger than the down,usually if u look at their archives u will see they mostly started trading this year. One has only to look at the difference between te PUT and CALL prices,and of course "talk their book" once they have bought PUTS. The down phases don't produce the results as they only last a about three days at the most.Then there the bears that have convinced themselves of an almighty pullback in September.i have never heard of this till this year. Take TOPSKP and u will see that there almost double the amount of BIDS to the amount of OFFERS. Well folks i really cannot "bear' the thought of any forumite loosing everything,but at 17 cents it has not far to go to get to zero!
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saash
Super Contributor
Yes Barry - but we into a gap close - probability of a quick short and exit may be very profitable. So, if you can spare a little cash on risk - it may be worth a little ride. The higher the risk on these products, the better the reward on the profitable trade. Holding tight stops and keeping nible exits in the event of any indication that the gap play is no longer in action. A small move short turns out being far better value for money on risk than a big move long.
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