Call Warrant updates as at January 26, 2007

The call warrants' prices increased by a whopping 17.72% since last Friday (January 19) as compared to a 2.76%-increase in the underlying share prices. The average premium has increased from 9.23% to 10.53% (see Table 1 below).


Table 1: Changes in Call warrants' prices, underlying share prices & premium from Jan 19 to Jan 26

From Table 2 below, you can see that the number of call warrants has dropped from 35 to 33, with the suspension of the first 2 expiring call warrants (i.e. Astro-CA & Scomi-CA). The cheap call warrants (those trading at a discount or at a premium not exceeding 6%) are highlighted in yellow while 4 call warrants which 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 Jan 26

In the previous market peak on December 12 last year, the call warrant's premium was more than 13% (here). Since there is another source where one can obtain the call warrant pricing i.e. from OSK188.com, I would like to find a good reason to continue posting my Call Warrants Updates. I wonder whether the call warrant's premium could forewarn us about the excessive bullishness in the market and its impending capitulation. We will wait & see.