re: marco -* bil and thw warrants bilwgg/ bilwph.. Hi Seventhwave,
I trade in and out of them a fair bit when I have time.
Thats the key. You need to watch them like a hawk in case they go against you. I only trade BHP Warrants both Call & Puts. Simply because I know and understand the company and the amount of information available to make a reasonable decision. Alot of HC posters here trade BHP warrants as its shareprice is volatile which is a good thing and there are a large series of warrants available for BHP.
The best place to start is the ASX website. It has all the series plus alot of information and strategies.
If you are serious about trading them here are a few tips.
1) Read the ASX PDF file on Warrants.
2) Have at least two good online broking firms.
3) Realtime/Preferably streaming data/Market Depth
4) Use the Warrant Calculator on the ASX website to help determine a fair price on the warrant and your chances of it being (In The Money or Out of The Money) at expiry.
5) Only go for a company that is volatile with alot of shares traded throughout the session.
6) I do not trade Barrier warrants or warrants with numbers or X's in them. (Each one has different criteria and a very specific meaning)
7) It is important to read about a Warrants intrinsic & time value as a warrant decays very quickly as it approaches the deadline. Read up on the ASX.
That is where the Warrant calculator can come in handy.
8) Go for a warrant with a good track record of buyers and sellers. You don't want to be last man standing.
9) Check to see how many warrants were issued.
10) Check to see how many of the underlying warrants to each security. This has a lot to do with the price you pay and how quickly it moves as a ratio to the security. Ex: 1:1 2:1 4:1
11) Papertrade them for a while to get a feel before committing any hard earned.
At the end of the day they are not everyones cup of tea, but if you like an adrenalin rush and are disciplined in your trading you can make alot of money.
The downside is you can lose alot of money.
Goodluck with it.
Cheers
Markco2
BIL
brambles industries limited
