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Warrants/Call/Put/SG investment

  • 12-01-2009 6:30pm
    #1
    Bytheway
    Registered Users, Registered Users 2 Posts: 110 ✭✭


    An an avid reader of the IC, Simon Thompson has been stating the attraction of warrants (Societe Generale). If there is anybody (like myself) that believes we are in for another great fall in the markets, than SG seems to have a short for it like as short for sterling which has done pretty well over the last few months.

    I'm trying to get to grips with it and have a few questions.

    Is it pretty much like the stock market, where you buy the warrants (shares),you can buy CALL if bullish, PUT if bearish, and with gearing, you get a multiple of your investment if you called the right direction of movement ?

    Bear Strike Parity Bid Ask Gearing Change Size
    PUT 3600 1000/1 32.00 32.20 3.5 1.58% 600,000 SC28

    What does strike price, parity and size mean?
    I presume the bid and ask are the same as stocks!

    With no CGT or Stamp Duty payable. They look attractive even if i still haven't a great understanding of them !!


Comments

  • #2
    Idu
    Registered Users, Registered Users 2 Posts: 1,152 ✭✭✭Idu


    sounds like options trading to me rather than straight stock trading(or trading of that variety) but thats not really helpful to you as I have no clue about options


  • #3
    dunkamania
    Closed Accounts Posts: 1,803 ✭✭✭dunkamania


    Warrants are essentially options issued by the underlying company, as opposed to an exchange. They usually have expiry dates that are further out than options

    http://www.investopedia.com/terms/w/warrant.asp


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