Investor A purchased a small amount of EcoPro call option stock warrants ( ELW ) at the end of August. This is because EcoPro, which rose to 1.53 million won in mid-August, stabilized at the 1.2 million won range for a while, and it was judged that it would rise again soon. The exercise price of the ELW purchased by Mr. A is in the 1.08 million won range, and it is a profitable product as long as the EcoPro stock price does not fall below the exercise price by the expiration date of early November. However, in September, when EcoPro prices fell day after day, falling to the 900,000 won range, Mr. A became impatient. The price of the call option ELW he purchased was cut in half. He said, “I know that I make a profit as long as the stock price is above the exercise price until maturity, but I am worried that the stock price will actually fall significantly. Still, I believe that EcoPro will go back to the mid-1 million won range.” As EcoPro fell more than 22% this month, call option equity warrant ( ELW
) investors betting on EcoPro’s stock price suffered a loss of up to half. During the same period, Ecopro BM stock price fell 10%, but put option ELW investors who profit when Ecopro BM falls reaped profits of more than 35 % in about a week. Currently, the put option ELW with EcoPro as the underlying asset is not listed.
According to the Korea Exchange on the 12th , the prices of four out of six put option ELWs (put warrants) that bet on the rise in EcoPro stock price listed on the domestic stock market all fell significantly this month. The two stocks that had no price changes had no transactions from the 31st of last month until the 11th of this month. The prices of all traded stocks fell.
Among EcoPro call warrants, the stock with the most notable decline is ‘Korea JQ19 EcoProcol’, which fell by more than 52% from 390 won on the 31st of last month to 185 won on the 11th of this month based on the closing price. Next, ‘Korea JG85 Eco-Procol’ and ‘Korea JQ21 Eco-Procol’ fell by 33.88% (605 → 400 won) and 30.08% (665 → 465 won), respectively, and ‘Future J759 Eco-Procol’ dropped by 15.06% from 1,760 won to 1,495 won. It fell. EcoPro’s stock price decline rate during this period was 22.04%. Call warrants fell by more than twice the decline in EcoPro’s stock price.
Ecopro BM’s call warrant price also dropped바카라 significantly. Ecopro BM fell 10.63% during this period, and among the 23 Ecopro BM call warrants currently listed on the domestic stock market, the average fluctuation rate of 10 whose prices changed during the same period was minus (-) 23.77%. Among these, ‘ KBJ496’Eco BM Call’ showed the largest decline, falling 44.19% from 215 won to 120 won. The remaining 13 stocks had no price changes due to lack of trading volume. On the other hand, the price of put option ELW
(put warrant) , which bets on the decline of Ecopro BM, rose. ‘Future JF59 Eco BM Foot’ rose 35.71%, ‘Korea JN05 Eco BM Foot’ rose 14.29%, and ‘Future JF60 Eco BM Foot’ rose 4.35%. In the case of ‘Korea JR62 Eco BM Foot’, the first transaction occurred during this period and was traded at 60 won. Among the Ecopro BM put warrants listed on the domestic stock market, there were 8 stocks traded during this period. Of these, 4 rose, and 3 recorded a 0% fluctuation rate. The one product whose price has been reduced is ‘ KBJ363 EcoBM Foot’. However, the trading volume is extremely low. This stock fell 95% from 100 won on the 31st to 7,500 won worth of trading (trading volume 1,500) on the 4th and 8th of this month.
ELW is a product that allows options to be traded like stocks. Buying and selling the right to buy (call) or sell (put) the underlying asset at a predetermined exercise price. When the price of the underlying asset falls, the price of put options rises and the price of call options falls.
For example, let’s assume that Company A’s stock, which is currently worth 10,000 won, is expected to rise, and that you buy a call warrant for 1,000 won that allows you to buy this stock for 10,000 won after one year (expiration). If the stock price rises to 15,000 won after one year, you can exercise the call warrant and buy the stock for 10,000 won a year later and sell it again. At this time, the investor receives a profit of 4,000 won, which is the stock price difference (5,000 won) minus the call warrant purchase cost (1,000 won). You can also make a profit by selling ELW early without waiting for maturity. If a call (put) warrant is purchased and the stock price stays below (or above) the exercise price before expiration, the investor suffers a loss equal to the cost of purchasing the option.
As Ecopro BM’s stock price continued to decline this month, the trading value of Ecopro BM put warrants also increased significantly. This can be interpreted as an increase in the number of investors who expect Ecopro BM’s stock price to decline. From the 1st to the 8th of this month, the put warrant trading amount was 51.31 million won, an increase of more than six times the amount three months ago (June 1st to 8th , 8.42 million won). During this period, the number of stocks increased significantly from 7 to 31.
On the other hand, the trading value of EcoPro call warrants decreased significantly. The trading amount for the 1st to 8th of this month was 14.24 million won, a decrease of more than half compared to 34.14 million won three months ago. This means that the number of investors expecting EcoPro’s stock price to rise has decreased.