NB AMS CB

[#1]

Look I know I'm no expert but should NB AMS CB which is a Americal Call Warrant be negetively correlated to the the underlying share Anglo Plat, I'ts just so confusing, it behaves nothing like the underlying share., Pls help me understand

[john_1]

A CALL is suposed to behave like the share. a PUT should work in reverse

[#3]

That's Exactly my point. eg. yesterday the underlying closes positive 4.64% but the Call closes negative 25% and this happens all the time.

[john_1]

CAll them 011-5354030

[#5]

I think this is one of those that's seen it's best days, trading at ~2c or so? Probably the issuer not making market for warrants that low.

[Trader_Boy]

iky, i agree, its also probably way out the money + time decay, and based on ams's volatile performance, that strike looks highly unlikely within that time frame

[#7]

Thanx all, I did call that no. and it is due to the strike being R1350 and a theta being -64.2%. 2 new questions though - We only 24% away from strike if it should reach the strike what will happen to the price of the warrant? With such a large spread 4:13 were do I get out?

[#8]

Thanx all, I did call that no. and it is due to the strike being R1350 and a theta being -64.2%. 2 new questions though - We only 24% away from strike if it should reach the strike what will happen to the price of the warrant? With such a large spread 4:13 were do I get out?

[#9]

Thanx all, I did call that no. and it is due to the strike being R1350 and a theta being -64.2%. 2 new questions though - We only 24% away from strike if it should reach the strike what will happen to the price of the warrant? With such a large spread 4:13 were do I get out?

[john_1]

School fee's ..This thing is losing more than 10% value every day. just phone the and ask them to take you out at fair value. walk away, and go learn how a warrent works before trading them again.. rule of thumb if its below 30cents stay away.

[saash]

I'm still looking at warrants and trying to learn. I don't see much trade happening in a lot of them. Who sets the price? The market maker or traders? Is this vehicle completely different to shares. Got a warrents account opened and tried to make a trade and SBK messed up the funds transfer so in the morning I opened the account & it was in OD for as much as I had put in. Had a heart attack and sold some perfectly good warrents cos I thought it was them that had liquidated my account... school fees. I've been observing the TOP warrents and notice similar problems as this AMS one. Done the online course, and browsed other info. Any more pearls of wisdom from your trading experiences John?

[SimonPB]

saash, a warrants price is determined by the issuer using a fair vaue calc. As such volume (or lack of) is not an issue.