Chart: HSBC's daily chart as at Nov 3, 2010 (Source: Stockcharts)
For the chart of HSBC as traded in HKEX, go to Yahoo Finance.
Based on the above, you can consider the 2 CWs of HSBC listed on our exchange. The terms & valuation are as follows:
Table: HSBC's CW valuation
I prefer HSBC-C7 for its longer tenor. However, HSBC-C6 also has its attractions, such as lower premium & higher gearing.
10 comments:
hi alex,
TSM corrected a bit after bonus issue announcement. Do you think is a buying opportunity?
thanks
maxwealth88
Hi Alex,
What are the counters on Bursa Malaysia that we can leverage on HSBC share listed on HKSE ?
Have a great weekend.
Kind regards
Roger
HI Alex,
can i know what system you use to monitor all this charts and also if this system prompt you on break out.
Hi Alex,
I prefer C6 because of the leverage of 25 times! One can make big in this kind of gearing. Of course one can lose big too. but the maximum one loses is the price you pay for but upside is unlimited. Moreover, if you use option pricing model, be it Binomial or Black-Scholes, C6 is undervalued by 10%.
Hi Alex,
Can u give your comments for Hubline and iris? Thks
Hi MaxWealth88
TSM is still a good buy if it corrected back a bit more. Ideally, you should aim for the horizontal line support of RM3.60 but it may not go that far. You may start nibbling at RM3.80-3.90.
Hi Roger Ho
The only way to play the developing uptrend in HSBC on Bursa is by buying HSBC-C6 or HSBC-C7.
Hi William
It may disappoint you to learn that I do not have a scientific way of tracking stocks. In my free time, I would look at many stocks that I like & when something registered, I would then track them from time to time. When a breakout happened, I would call a BUY.
Hi K C
I agree with your take on HSBC-C6. The important qualifier which you have rightly noted is the higher risk involved. Good luck.
Hi nightradersdk
Technically speaking, I would prefer to trade Iris than Hubline. Hubline is still in a downtrend with no sign of a possible rally. Iris has broken above its medium-term downtrend & is in a short-term rally with could potentially retest its May 2009 high of RM0.22.
Please check on their financial statements by going to Bursa website.
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