Warrant codes

[sam21poddy]

Does anyone know where I can find a list of what extensions mean in the warrant codes? For example, I know WESSMT means Wesfarmers self funding instalments. When I look up available warrants for shares, there are so many that I can't look up the Product statement for every one. I am particularly looking for ordinary instalment warrants that pay dividends like shares. If anyone could point me in the right direction I would be grateful.

 

[Qlds007]

Sam

This might help i use it a lot.

http://www.ozwarrants.com.au/

 

[RichKid]

Does anyone know where I can find a list of what extensions mean in the warrant codes? For example, I know WESSMT means Wesfarmers self funding instalments. When I look up available warrants for shares, there are so many that I can't look up the Product statement for every one. I am particularly looking for ordinary instalment warrants that pay dividends like shares. If anyone could point me in the right direction I would be grateful.

www.asx.com.au has a warrants section, good info and free education courses (and paid courses too).

 

[denk]

http://www.ozwarrants.com.au/library/libcodes.asp

This could be of use?

 

[sam21poddy]

Re: Trading call warrants

Thanks for the info on the websites - very useful. I bought the book "Trading Stock Options and Warrants" by Chris Temby and in it he has a strategy of trading call warrants of major stocks in $4,000 parcels. This appeals to me because it means I wouldn't be tying up so much money in buying the whole share. One of the rules is to buy call warrants that have at least 6 months to expiry. So I get all ready to try this strategy but I can't find any call warrants for major shares with at least 6 months to expiry. I can find plenty with one month to 3 months. This book is dated 2001 so do you think issuers have shortened the expiry dates since the book was written or am I not looking hard enough?

 

[RichKid]

You can still make money if it's got three months to go and say for eg a stock is going exdiv a month before that. I try to buy ones that are just out of the money. Expiry is shorter, closer to options these days but keep looking via ASX site and you'll find some longer dated ones. I'm only beginniing in this but found William Harper's books on Derivatives a good start.

 

[denk]

Re: Trading call warrants

Thanks for the info on the websites - ...../ One of the rules is to buy call warrants that have at least 6 months to expiry. So I get all ready to try this strategy but I can't find any call warrants for major shares with at least 6 months to expiry. I can find plenty with one month to 3 months. This book is dated 2001 so do you think issuers have shortened the expiry dates since the book was written or am I not looking hard enough?

Nope dates have <b>NOT</b> been shortened. Most of the longer dated warrants are in instalments - which in accordance with your planned strategy - are all calls.

Plusses:- you get all the rights of ownership (well nearly all ... i.e. can't vote at meetings (but who does that anyway ¿))
- they will not expire with nil value attached to the premium paid, but are mostly rolled

Negatives:- you cannot get the same gearing that you can with the shorter dated ( ¿ - remember instalments eventually expire too - so there are short and long dates to trade)
- you are borrowing from the issuer and so incur interest (as oppossed to trading against the issuer's written positions ...). Watch this - as little attention or fanfare is made about the interest, but it is or can be a material cost element?

FWIW

try this url for longer dated warrants... (WARNING:beta / test page)

http://www.ozwarrants.com.au/warinst/instalact.asp