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TOPSBS - is the matrix way off here

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mib
Contributor
is the matrix way off here and what should it be trading at?
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9 REPLIES 9
Not applicable
My words exactly!! Looked at the matrix and thought, why the hell is the market maker not moving an inch even when at one stage we were down +- 150 points ?!??
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Not applicable
Simon, can you maybe help us out here? thanks
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XWolf
Contributor
Right now it seems to be right. Remember that TOPSBxx warrants are based on the JUN07ALSI future price (which is 391 points above TOP40 index last I checked). So now (11h11) 24084+391=24475 and on the warrant matrix that's where the spread is 16,17. So, at the time of writing this, the matrix was correct.
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SimonPB
Valued Contributor
not watching it - but nasty warrant and nasty delta will make it sluggish. Also remembering matrix tracks futures not spot.
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Not applicable
Thanks! Forgot it is not tracking the spot...
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DCTrader
Super Contributor
Where can I track the movement of the Jun forward contract?
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XWolf
Contributor
Simon, how do you decide when a warrant is nasty? (Ok... this probably depends on your appetite for risk, but I'd like your opinion)
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mib
Contributor
is -0.18 nasty - what range should I be looking at because most of the puts are similar?
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SimonPB
Valued Contributor
must be at least 20c, higher is always better as smaller spread in %. At 18/19 your spread is over 5% and you loose that teh moment you enter the trade. Rest for ideal; delta 40-60, time decay no more then 2.5/3% per week, gearing around 5x for stocks and 10-12x for indices. Also use the risk assessment on the WarMap, never trade a high risk (H) warrant.
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