....going to their results ,is First Rand,their warrant coming along nicely.Results Declared on the 17 Sept and its the only bank ,of the big four,at this time of the year coming up to its Finals,all the others were only their Interims.I'm hoping it won't fall back as when fairly good results expected and a good forecast for the future will help bouy the share.
Hi Barry. As an expert warrants trader, can you educate me a little please. I've made a neat little profit on my FSR call this week and, as you say, results are out shortly. Usually, I'd get out of a call warrant on friday because it seems like the time decay effect kicks in by the next week (or am I wrong on this?). In this FSR scenario though, what's your take on holding the warrant until results are released? Thanks.
Just my 2c - I would not hold onto it. The banks had a great run and there may be some profit taking. That, along with the time decay, would prompt me to sell the warrant and buy back in at lower levels. Also, the results may not be good... It's all about whether the results are better or worse than expected. Of course, you can also argue that any bad results are already priced in and won't really affect the share price, similar to the CPI and PPI numbers we just saw...
usually good advice to sell out on fridays of lower priced warrants as time decay makes it very unpleasant to hold.How ever also depends at what price u got in at and i've found that costs and being able to get in the next week are sometimes against one so i stay in for a couple of weeks if i deem it worthwhile.