The premium rate is so high
After a month long correction, the price of Leyte currency has directly dropped by about 50%. Fortunately, the currency has finally stopped the downward trend. Nevertheless, it is still hard to say whether this currency and other competitive currencies will start to rise or continue to decline in the next few weeks, and whether it is possible to break the rock bottom price
on the 1-hour table of Leyte to bitcoin, we can see more clearly that the recent breakthrough occurred near 0.083cong, and then brought a rapid rise of 15%. On the Maxx momentum indicator, the green bar chart clearly shows that the buying momentum has turned upward. The 50 day moving average is now touching the 0.088 Cong control point, which may bring the price back to this range in the short term
in the past 48 hours, the competitive currencies in the whole market showed some urgent rising momentum after continuously breaking the low point
the bank has analyzed for a long time, and it is very important to monitor the correlation between the price trend of lightcoin and bitcoin. The relationship is particularly useful when trying to measure market traffic and whether a competitor is really worth trading. Generally speaking, when bitcoin moves rapidly in any direction, whether upward or downward, it is difficult for competitive currencies to stabilize, because their volatility is far less than that of bitcoin. Therefore, when bitcoin consolidates and develops horizontally, it is the best way for competitive currencies to move higher
this article is for reference only
to learn more about blockchain and currency market information, you can pay attention to microblog @ blockchain coin sea, or go to the website: coin sea departure https://www.bihai123.com.cn/news
litecoin (LTC, currency symbol: Ł) It is a kind of network currency based on "peer-to-peer" technology. It is also an open source software project under MIT / X11 license. It can help users make instant payments to anyone in the world
lightcoin is inspired by bitcoin (BTC) and has the same implementation principle in technology. The creation and transfer of lightcoin is based on an open source encryption protocol and is not managed by any central organization. Lightcoin aims to improve bitcoin. Compared with bitcoin, lightcoin has three significant differences. First, the lightcoin network can process a block every 2.5 minutes (instead of 10 minutes), so it can provide faster transaction confirmation. Second, the lightcoin network is expected to proce 84 million lightcoins, four times the amount of money issued by bitcoin network. Thirdly, the scrypt encryption algorithm first proposed by Colin Percival is used in lightcoin's workload proof algorithm, which makes it easier to mine lightcoin on ordinary computer than bitcoin. Each Leyte is divided into 100000000 smaller units, defined by eight decimal places.
the increase of premium rate may have the following situations:
a. the fluctuation of positive stock is small, and the warrant rises. If the underlying stock market is optimistic, but it has not yet officially started, the call warrant market will take the lead and can be used for long-term investment
B. when the positive stock rose, the warrant rose sharply, and the rising range exceeded that of the positive stock. Most of them appear in the stock market, which drives the warrants up and is easy to grasp. Call warrants are investment opportunities while put warrants are high-risk speculation
C. when the positive stock falls, the warrant does not fall or the decline range is less than that of the positive stock. Adverse to subscription, put has investment opportunities
the decrease of premium rate may be caused by the following situations:
a. the fluctuation of positive stock is small, and the warrant falls. Due to the change of supply-demand relationship, both subscription and put are affected by the future trend judgment
B. the positive stock fell, while the warrants fell sharply, and the decline rate exceeded the rise rate of the positive stock. Call warrants are reasonable performance, put warrants contain investment opportunities
C. when the positive stock rises, the warrant does not rise or the rising range is less than that of the positive stock. Call warrants contain investment opportunities, and the performance of put warrants is more affected by the future market; Under such conditions, we can accurately predict the change of premium rate of warrants, with the judgment of the trend of positive stocks, and find the appropriate buying and selling points in the warrant market.
Low is better, because before the expiration of warrants, how much percentage of the price of the underlying stock needs to be changed in order for warrant investors to make a peace on the expiration date. Premium rate is one of the data to measure the risk of warrants. The higher the premium rate is, the harder it is to fight
The specific situation is as follows:
the premium rate increases as follows:
1. When the premium rate reaches or exceeds the lower edge of the premium rate channel, the call warrant market will take the lead and make long-term investment if the positive stock has a good future but has not been officially launched
2. When the positive stock rose, the warrant rose sharply, and the rising range exceeded that of the positive stock. Most of them appear in the stock market, which drives the warrants up and is easy to grasp. Call warrants are investment opportunities while put warrants are high-risk speculation
3. When the positive stock falls, the warrant does not fall or the decline range is less than that of the positive stock. Adverse to subscription, put has investment opportunities
There may be the following situations when the premium rate decreases:1. Due to the change of supply-demand relationship, both subscription and put are affected by the future trend judgment
2. The positive stock fell, while the warrants fell sharply, and the decline rate exceeded the rise rate of the positive stock. Call warrants are reasonable performance, put warrants contain investment opportunities
3. When the positive stock rises, the warrant does not rise or the rising range is less than that of the positive stock. Call warrants contain investment opportunities, and the performance of put warrants is more affected by the future market; Under such conditions, we can accurately predict the change of premium rate of warrants, with the judgment of the trend of positive stocks, and find the appropriate buying and selling points in the warrant market
extended data:
it should be noted that when the stock is in the stage of rapid rise or rapid decline, when the premium rate touches or exceeds its probability channel, it does not necessarily appear reverse movement immediately. Because at this time, the premium rate channel will also rise and fall rapidly. In addition, this analysis method is no longer applicable when warrants face maturity
e to the sharp decline of the time value of warrants in the last month of their ration, the premium rate is reced until it disappears. And in the last few days, e to the market sell-off, there is a strong possibility of a discount. At this time, the warrants within the consideration also constitute investment opportunities
Premium rate is one of the data to measure the risk of warrants.
the higher the premium rate is, the higher the requirement of the change range of the underlying asset price to the investor's favorable direction is, and the higher the risk is. In short, investors can regard the premium rate as one of the investment costs
Calculation formula of premium rate:premium rate of call warrant = (call warrant price + exercise price) × Exercise ratio - underlying asset price × Exercise proportion) / (underlying asset price × Exercise proportion) × 100%
put warrant premium rate = (put warrant price exercise price) × Exercise proportion + underlying asset price × Exercise proportion) / (underlying asset price × Exercise proportion) × 100%
extended data
give an example
the exercise price of a call warrant is 50 yuan, the current price of the warrant is 1 yuan, the current price of the main stock is 45 yuan, and the exercise ratio is 1:1. The formula shows that the premium rate of the subscription certificate is 1.3%. That is to say, if the investor holds the stock until it is sold, the positive stock must rise at least 1.3% before the investor can keep his capital
warrant performance
premium rate is an important index in the analysis of warrant value, which reflects the deviation degree of warrant price and exercise price relative to the stock price. As a kind of power to buy or sell stocks, warrants have time value and theoretical value. Therefore, it can be used as a substitute for positive stock. According to the law of one price, the price of warrant is closely related to the price of positive stock. This paper attempts to use the premium rate as a method to analyze the value of warrants, and obtains many interesting conclusions
reference: network premium rate
Bus route: Zhongwang west station line → 705 west line, the whole journey is about 17.8km
1. Walk 790m from lubeikou Instrial Park to hongqicun station
2. Take Zhongwang west station line, pass 9 stops, reach Huanhu Xili station
< P > 3. Take 705 west line, pass 7 stops, reach rongqian Dongli station4. Walk 440m, Get to Tianjin first central hospital
bus line: no.710 → no.866, the whole journey is about 18.0 km
1. Walk about 770 meters from lubeikou Instrial Park to Hongqi Village Station
2. Take no.710, pass 6 stops to Tianta station (or take no.710 interval)
3. Walk about 70 meters to Tianta station
4. Take no.866, pass 4 stops, Arrive at Tianjin Library Station
5, walk about 820 meters to Tianjin first central hospital
In the bull market, the underlying stocks of convertible bonds rise with the market, so does the price of convertible bonds. In this case, the value of pure bonds has little effect on convertible bonds, and the premium rate of pure bonds has little reference in practice. At this time, we should pay attention to the premium rate of convertible bonds
convertible bond premium rate refers to pure bond premium rate and convertible bond premium rate. Pure bond premium rate indicates the extent to which the price of convertible bond exceeds the value of pure bond, and indicates the strength of debt. It is calculated by subtracting the value of the net debt from the price of the convertible bond and multiplying the value of the net debt by 100%. At present, the price of convertible bonds per share is more than 130 yuan, of which the highest price is 125822 yuan of Haihua convertible bonds, which once reached 389 yuan, with a premium of 289%
extended data:
another indicator is the conversion premium rate, which indicates the extent to which the price of convertible bonds exceeds the conversion value. It is calculated by subtracting the value of the convertible bond from the value of the convertible bond, dividing it by the value of the convertible bond, and multiplying it by 100%
the value of convertible bonds is calculated as follows: divide the number of convertible shares of each convertible bond by the face value, and then multiply by the positive share price. According to the stock price on June 8, if the convertible bond price of Jinying (110232) is 6.28 yuan, the number of convertible bonds per share is 100 / 6.28 = 15.92 shares, multiplied by the positive stock price of 10.62 yuan, the convertible bond value is 169.07 yuan. The price of convertible bonds is 179.49 yuan, so the conversion premium rate is (179.49-169.07) / 169.07 × 100％＝6．16％
we often consider the premium when buying and selling warrants, so as to judge whether they are cheap enough and whether the risk is large enough? In fact, what is the significance of premium to investors
to understand the meaning, we can start from the premium formula: Source: Bangchui stock knowledge network
[exercise price + (warrant price) × Share conversion ratio)] - positive share price premium (subscription certificate)= × 100% positive stock price positive stock price - [exercise price - (warrant price) × Conversion ratio] premium (put warrant)= × What does 100% positive stock price mean? Take the warrant as an example. If the formula is divided into two parts, the first part is: exercise price + (warrant price) × In other words, the premium is: how much the positive stock needs to rise, the investor can buy the warrant at the current price and hold it until the maturity date
for example, the market price of an HSBC subscription certificate is 0.77 yuan, the exchange ratio is 10 to 1, the exercise price is 117 yuan, and the current price of HSBC is 116.5 yuan. Through the formula, we can conclude that the premium of the certificate is 7%< br />
[117+(0.77 × 10) - 116.5] premium (put)= × 100% = 7% 116.5
this means that if the investor purchases the warrant at the current price and holds it to the maturity date, the share price of HSBC will rise by 7% from the current price of 116.5 yuan to 124.7 yuan, and the investor will just make a peace
suppose there are two warrants. The premium of warrant a is 10%, while that of warrant B is 20%. The premium of warrant B is relatively high, and the positive stock needs to rise more to make its warrants reach a balance at maturity. In this view, the purchase of warrant a will be more cost-effective. However, if investors are only fast in and fast out, they don't want to hold until maturity. Most of the time, they only hold warrants for 5 days or 10 days and then sell them for arbitrage or stop erosion in the market. The premium level does not make much sense to investors
but sometimes, the premium has reference value. Here are two situations in which the premium becomes meaningful
first, suppose that there are two warrants, the underlying assets, exercise price and maturity date are exactly the same, but the price of one of them is higher, and the calculated premium is also higher
the terms of the two warrants are exactly the same, but the price of one is higher, and the only explanation is that its extension amplitude is higher, that is, the warrant price is more expensive. In this case, the premium has reflected the extent of the extension. Two identical goods, of course, choose the cheaper one. Note that this is the only case, just look at the premium can also know which warrant is cheaper and which one is more expensive. However, in reality, there are few warrants with exactly the same terms. In fact, the extended volatility is the real index to compare the warrant price< Second, we say & quot; If investors do not intend to hold warrants to maturity, the premium level has little significance to investors;, But conversely, if investors have the opportunity to hold warrants to maturity, they may need to refer to the premium level. Generally speaking, there are several investors who may hold warrants to maturity
1. What investors buy is short-term warrants, and investors aim at the value of warrants when they mature< However, investors know that their discipline to stop loss and profit is low, so they should expect that in the worst case, if they really hold warrants to the maturity date, they will be able to keep balance
3. In consideration of hedging or other reasons, investors need to hold warrants until maturity
If an investor decides (or is forced) to hold the warrants to the maturity date, he has actually expected to give up all the time values, and only aims at the increase of the principal stock before the maturity date of the warrants. Under this principle, the premium becomes relatively meaningful. Because the definition of premium (warrant as an example) is: how much the positive stock needs to rise, the investor can buy the warrant at the current price and hold it until the maturity date. The lower the premium is, the easier it is to recover the capital. In other words, the higher the chance of making money at maturity (above the mark up point of the positive stock price)
in this case, buying warrants at a premium is not based on the level of the warrant itself, but on which one is easier to recover (although the warrant may be the most expensive one in the price). Strictly speaking, investors don't make decisions with the mentality of buying warrants, but just treat warrants as regular stocks bought at a lower price. The data such as the extension amplitude and the actual leverage ratio are no longer useful, because investors don't profit from the short-term changes of regular stocks, but only focus on whether the regular stocks can make peace at the expiration of warrants, This is totally different from the goal and mentality of general investment warrants.