Another headline-driven week amid peace talks - call warrants over oil beneficiaries, index puts as potential hedge?
🔺This morning, the $Nikkei 225 Index(N225.JP)$ June futures rebounded 2.3% to 57,830, the SIMSCI futures added 1.7% to 454.30 while the $Hang Seng Index - main 2604(HSImain)$ index moved 1% higher overnight to 25,924 (all as of 834AM)
🆙The $S&P 500(.SPX)$ which was up 1% to 6,886.24 overnight, as well as the Nikkei225 Index, have effectively erased all Iran war-driven losses
🛢Crude oil prices fell 2.9% to trade back below USD 100/barrel
👥Some analysts have noted that the drop in spot Brent Crude has been relatively timid compared to the rally in stocks and FX, suggesting that oil traders are much apprehensive about the prospect for a permanent peace, whereas stock investors are more optimistic
🗓Others hold the view that the peace talks may not come to a resolution that opens the Strait of Hormuz within the two-week time frame as Iran and US remain far apart on their key demands
✳Yesterday when crude oil prices surged more than 8% to trade back above USD100 a barrel, crude oil names such as PetroChina (+1.6%, HKD 10.97) and utilities names such as Sembcorp Industries (+1%, $6.95) finished higher for the day, while trending warrants PetroChina call $PetroCH MBeCW261005(JJGW.SI)$ (https://warrants.com.sg/tools/HistoricalPerformance/JJGW) was up 5.3% to SGD 0.020 and Sembcorp Industries (SCI) call $SembInd MBeCW260730(NBDW.SI)$ (https://warrants.com.sg/tools/HistoricalPerformance/NBDW) added 3.5% to SGD 0.059
🚫There are no put warrants available over both names
✴Cautious investors could either consider call warrants tracking beneficiaries of a crude oil increase such as PetroChina or SCI, or use index put warrants tracking either the US markets of S&P500/Nasdaq-100 or Asian markets of Nikkei225/Hang Seng/SIMSCI to hedge their stockholding: https://warrants.com.sg/tools/warrantsearch/?underlying=Indices&maturity=all&expiry=all&type=put&effectiveGearing=all&indicator=all&moneyness=all&issuer=MBL
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- beyondantares·04-15 22:06Great article, would you like to share it?LikeReport