Derivative Warrants (DW) are financial instruments which return is a multiplier of the underlying security’s return. The holder has the right to buy (Call DW) or sell (Put DW) the underlying security in the future at a predetermined price, quantity and period as specified by the company.
DWs Underlying Stocks: AAV, ADVANC, AMATA, AOT, BA, BANPU, BBL, BCH, BCP, BDMS, BEAUTY, BEM, BH, BLA, BLAND, BTS, CBG, CENTEL, CHG, CK, CKP, CPALL, CPF, CPN, DELTA, DTAC, EA, EPG, GFPT, GL, GLOW, GPSC, GUNKUL, HMPRO, INTUCH, ICHI, IRPC, ITD, IVL, KCE, KTB, KTC, LH, LPN, MAJOR, MEGA, MINT, MTLS, PLANB, PSH, PTG, PTT, PTTEP, PTTGC, QH, ROBINS, SAWAD, SCB, SCC, SIRI, SPALI, SPRC, STEC, STPI, TASCO, TCAP, THAI, THCOM, TKN, TMB, TOP, TPIPL, TRUE, TTA, TU, TVO, UNIQ, VGI, WHA and WORK
Selecting DW11 for your investment
Investors can select DW11 for your investment strategy by selecting the Call DW11 when the underlying security price is expected to appreciate and select the Put DW11 when the underlying security price is expected to depreciate.
The effective gearing ratio for each DW11 series is subjected to the time to expiration and underlying security price.
DW Key Features
- Investment for every market condition: Investors can enjoy making profits from Call DW when they expect the underlying security’s price to rise and enjoy making profits from Put DW when the underlying security price is expected to drop.
- Average effective gearing of 2-5 times: The investor can enhance the return from investing in the underlying security or use less cash to achieve the same level of return. For example, the investment in a Call DW with 3 times effective gearing on PTT as the underlying security will generate 9% return as PTT price rises 3%.
- No collateral needed: Investment in DW does not require any collateral deposit.
- Limited downside risk: The maximum downside risk of DW investment is limited by initial investment. No additional calls are to be made.
- Stock like trading: Investors can trade DWs like any stock on every working day until the DW expires. There is not restriction to buy on first issuance date and hold the DW until expiration.
Symbols for DW trading
UUUU stands for the underlying security;
- For underlying securities with ticker less than 4 letters, the ticker will be used e.g. PTT, BH.
- For underlying securities with ticker greater than 4 letters, the ticker will be the only first 4 letters e.g. HMPRO will be indicated with HMPR
11 is the issuer code – Kasikorn Securities uses the Exchange member no. 11.
C indicates the DW type.
- C stands for Call Warrant.
- P stands for Put Warrant.
YYMM represents the year and month of the last trading day. For a DW with last trading day in April 2016 will be displayed with 1604.
A is the code for DW series. The series is indicated by the alphabet (A-Z) for different series of the DW in the same month and year.
HMPR11C1604A is a Call DW with HMPRO as the underlying security issued by Kasikorn Securities. The Series A last trading day is within April 2016.
To contact Kasikorn Securities Investment Advisor