My first and last... wArRant

Equity Derivatives Societe Generale explained that there are 5 major factors influencing the movement of a warrant, namely - Underlying price, Days to maturity, Implied volatility, Interest rate, Dividend.

I *pui* ah...

Today, 5th June, STI Put Warrant 3450 STIsgaEPW070830, expiring 30th Aug, fell 7% when the STI closed 6 pts lower at 3572.9 pts! The put warrant is in the same direction as the underlying instrument! HOW CAN!!!? OK, I know this drop (the underlying instrument) is merely less than 0.2%, so it still depends on other factors like the IV and interest rate... The decay factor is too huge, and also decayed over the weekends! ANyway, I got so discouraged over these weeks, and finally dumped it at a great loss... *sob sob sob sob sob*. Bled & shed... ba bai and please continue to ls as you did....

For those who still want to gamble, or hedge your portfolio (which I still don't believe it works this way - it's not transparent how the BB played with the MM, and we as individuals could never beat the MM), check it out here. I liked the calculator though...

My heart is not as strong as before.