Call Warrant updates as at December 18

The call warrants' prices dropped 8.05% since December 13 as compared to a 0.18%-decline in the underlying share prices. The average premium continued to decline from 11.64% as at December 13 to 10.69% (see Table 1 below).


Table 1: Changes in Call warrants' prices, underlying share prices & premium from Dec 13 to Dec 18

The usual Call Warrants update is posted here as Table 2 for your easy reference. The cheap call warrants are highlighted in yellow while 2 call warrants that are due to expire in January 2007 (i.e. Astro-CA & Scomi-CA), have their expiry dates highlighted in pink and the 4 call warrants that are due to expire from February to April 2007 (i.e. BJToto-CA, Bursa-CA, IOI-CA & TM-CB) have their expiry dates highlighted in orange.


Table 2: Call warrants' intrinsic value & premium as at Dec 18

In my last update, I've examined the possibility of some tactical accumulation (read: trading buy) of call warrants in order to reap the benefit of a quick & strong recovery in the stock market. Unfortunately, that scenario did not pan out and the call warrants continued to drop. As a quick market recovery is fading, we should stick to the conservative approach of staying clear of this sector until the current selling has subsided.