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 | | From: | Glenn B | | Subject: | Pre-open Warrant pricing | | Date: | 16 Jan 2005 20:17:39 -0800 |
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 | Can someone explain how the pre-open pricing is set on warrant trades,
because as I understand it the market maker does not participate in the
pre-open market.
Is is simply a matter of looking at the closing price of the said
warrant in the previous days trading and putting in a buy at a price
you think someone may want to sell at just before the market opens, and
hope you get lucky?
Regards
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| | From: | RenoKing | | Subject: | Re: Pre-open Warrant pricing | | Date: | Mon, 17 Jan 2005 22:01:13 GMT |
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| "Glenn B" wrote in message
news:1105935459.318190.95980@f14g2000cwb.googlegroups.com...
> Can someone explain how the pre-open pricing is set on warrant trades,
> because as I understand it the market maker does not participate in the
> pre-open market.
>
> Is is simply a matter of looking at the closing price of the said
> warrant in the previous days trading and putting in a buy at a price
> you think someone may want to sell at just before the market opens, and
> hope you get lucky?
>
> Regards
>
My advice is to ignore the closing price as a guide because the warrant may
not have traded recently, and even if it had, movements in global markets
overnight will affect the volatility parameter used to value the warrant.
The safest thing to do is wait until the market is fully open at 10.10am and
the market maker is setting the price. If you go in before the open, you
will most likley trade at a price other than the fair value of the warrant.
Reno
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| | From: | Richard Dale | | Subject: | Re: Pre-open Warrant pricing | | Date: | Thu, 20 Jan 2005 12:15:33 +1100 |
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| > The safest thing to do is wait until the market is fully open at 10.10am
> and the market maker is setting the price. If you go in before the open,
> you will most likley trade at a price other than the fair value of the
> warrant.
Just a small correction here - all ASX stocks are open for trading at
10:09:00 - although the ASX reserves the right to open before or after this
time (+- 30 seconds I think).
--
Best regards,
Richard Dale.
Norgate Investor Services
- Premium quality Stock, Futures and Foreign Exchange Data for
markets in Australia, Asia, Canada, Europe, UK & USA -
www.premiumdata.net
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| | From: | Richard Dale | | Subject: | Re: Pre-open Warrant pricing | | Date: | Mon, 17 Jan 2005 15:31:25 +1100 |
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| > Is is simply a matter of looking at the closing price of the said
> warrant in the previous days trading and putting in a buy at a price
> you think someone may want to sell at just before the market opens, and
> hope you get lucky?
Correct.
It's also worth getting hold of the market maker's warrant pricing matrix
before the market opens too.
If you're only trading warrants primarily for the leverage also consider
CFDs - there's quite a few CFD brokers out there these days.
--
Best regards,
Richard Dale.
Norgate Investor Services
- Premium quality Stock, Futures and Foreign Exchange Data for
markets in Australia, Asia, Canada, Europe, UK & USA -
www.premiumdata.net
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