Scalp Trades Dated 29/3/2011

1. Scalp trades today :-

SUNREIT - sold at RM1.04, bought in RM1.03 the other day.

2. Just received my cash settlement on Tenaga-CP. :) Unable to get Maxis-CD at 0.065sen yesterday, those bought in at 0.07sen, the profit likely to be around 2% to 3.5%, nothing fantastic, so no regret.

3. To answer Davors, the reason market maker issue CWs is to earn money from the premium, of course when high premium they will start to dispose, i think it apply to all Bankers. Not necessary OSK only. I would suggest not to touch on high premium CWs, in fact during my initial sharing i already stress not to buy high premium CWs, because you are buying higher than market value and the only thing you gain is longer period of expiry but overtime the time decay factor come in, that is enough to eat into the premium away, then you left with ineffective CWs with mother shares price movement. Generally CWs become sensitive to mother's share price only when it has negetive or small premium, that is the time we should study the movement of mother share. Naturally people will tend to buy CWs when mother share price surge, because it reflect the actual value of CWs. Exercising the CWs with negetive premium has a high chance of making money as well. I for one will prefer to go for such trades on expired CWs as its winning is almost 80% to 90% rather than trading the CWs where it is a double edge sword that can go either way.

Nevertheless, i appreciate Davors' comments as this imply that he do observe the movement of CWs in relation to mother share price. This is the right way to do while trading with CWs.

4. Congratulation to my comrade hng... :) he is just like a daily money making machine. :)