Chart: Topglov's daily chart as at July 10, 2018_2.45pm (Source: Shareinvestor.com)
Despite the strong rebound in the share price, some Topglov call warrants are still dropping. In selecting call warrants to buy, you follow this set of rules:
1. Select CWs with adequate time to expiry (say more than 3 months)
2. Select CWs with low premium (say, 10% or less)
3. Select CWs with good gearing
4. Select CWs that's not too deeply OTM
Of course, we have skipped the first rule in picking CWs to buy; that's select the
From klsescreener, I have extracted all the CWs of Topglov. I have sorted them according to their expiry dates. Only 4 CWs meet the first rule on time to expiry (highlighted in yellow). Only one CW, Topglov-C29 meets the remaining 3 rules (Note: The premium of slightly above 10% is stretching the rule a bit).
Table: Topglov's CWs terms & valuation (Source: Klsecreener)
Topglov-C24, C27, C28, C30 & C31 have very short time to expiry and carry substantial (time value) premium. Avoid these 5 CWs.