What do the relevant indicators involved in trading warrants or bull/bear contracts mean?-FTFT International Securities and Futures Official Website - Hong Kong Stock Account Opening

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What do the relevant indicators involved in trading warrants or bull/bear contracts mean?

1、 Indicator

Wolun/bull/bear contracts generally involve the following indicators:

2、 Wolun Example

This is a fund issued by Goldman Sachs with Tencent as its target.

1. Exercise price

Exercise price: On the maturity date, the holder of the warrant has the right to purchase and sell relevant assets from the issuer at this exercise price.
The holder of this round has the right to purchase Tencent's stock from Goldman Sachs at a price of 389.08 on December 21, 2017

2. Maturity date

Maturity date: The date on which the holder of the vessel exercises the vessel's rights.
The holder of this vessel needs to exercise their rights on December 21, 2017.

3. Conversion ratio

Conversion ratio: The number of warrants required to exchange a related asset unit.
The rotation ratio of this stock is 10, which means that 10 units of the stock can be exchanged for 1 share of Tencent stock on the maturity date.

4. Strike and point

Match point: The break even point at which a buy in warrant is held until its maturity date.
The calculation of the breakeven point for this vessel is 0.81 (vessel price) x 10 (stock exchange ratio)+389.08 (exercise price)=397.18

5. Premium price

Premium: It reflects how much the relevant assets need to change to reach the breakeven point.
In this round, the calculation process of premium is: (397.18 (tie point) -34.4 (Tencent stock price)/345.4 (Tencent stock price)=14.99%

6. Actual leverage

Actual leverage: refers to the percentage change in the theoretical price of the underlying asset by 1%.
The actual leverage of this round is 10.66, which means theoretically, if Tencent's stock price changes by 1%, the price of this round will change by 10.66%.

7. Street goods comparison

Street to market ratio: The proportion of warrants held by market investors other than the issuer. The higher the street to goods ratio, the greater the impact of market supply and demand on the price of idle wheels, which will affect the accuracy of actual leverage.
The number of shares owned by market investors in this round accounts for 3.32% of the total proportion

8. Extended wave amplitude

Extended volatility: refers to the market's expectation of the future volatility of the relevant asset before the expiration of the stock, which is a major factor affecting the stock price. The implied volatility roughly reflects the cost of buying warrants. All other conditions being equal, the larger the implied volatility, the higher the price of the warrant.
The extended wave amplitude of this wheel is 32.06,

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