Reborn Xiangjiang as a Tycoon

Chapter 166 Options Trading

Monday morning, HSBC, Securities Department.

"What a pity, what a pity!"

After listening to Yuan Tianfan's report, Shen Zhou shook his head with regret.

Just now, Yuan Tianfan reported to Shen Zong that after the market opened this morning, a lot of Hutchison Whampoa's put warrants appeared on the market. While all the call warrants on the market were eaten up, there were also a large number of put warrants placed on the market. Lu They were eaten up by call warrants one after another.

As of the last trading day last week, Hutchison Whampoa's closing price was HK$6.58 per share, with a market value of HK$2.632 billion.

The exercise price of the put warrants that appeared on the market this morning is HK$6 per share, which is nearly 9% lower than the current stock price. In other words, if you buy this put warrant, you are betting that the stock price will rise. People, as long as the stock price does not fall below 6 Hong Kong dollars per share, then those who buy it will not lose money, and there is already a safe space for a 9% drop.

The running time of the put option is 30 days, which means that if the stock price of Hutchison Whampoa does not fall below HK$6 per share within 30 days, the bullish people will not lose money. If the stock price falls again after 30 days, it will have no effect on this option. It’s related.

It is precisely because there is about 9% safe space, so although there are a large number of put options in the market, institutions and individuals are still buying them one after another, and the transaction amount soon exceeded 100 million Hong Kong dollars. This is Extremely rare.

After all, this is the options market for one Hutchison Whampoa stock, not the trading volume of the options market for the entire Hong Kong stock market.

The reason why Shen Cong felt regretful was because HSBC couldn't buy those put options from the market and act as counterparty, so it couldn't make money, so it was naturally a pity.

Although Shen Cong still doesn't know why there are so many funds in the market to short Hutchison Whampoa, and he does not choose to short-sell from securities companies, but chooses options to short-sell, but he is very clear about Hutchison Whampoa's gold through HSBC Capital Futures investment has made a lot of money.

In other words, once this news is announced to the public, Hutchison Whampoa's stock price will inevitably rise sharply, so now the counterparty to the put warrant is guaranteed to make a profit, and there is no possibility of losing money.

The reason why HSBC cannot buy from the market is because Hutchison Whampoa's warrant issuing company is HSBC. HSBC is a third party in the transaction and can only collect option fees from the buyer and seller and cannot participate in the transaction.

No matter how Hutchison Whampoa's stock price rises or falls, who makes money when it's long or short, anyway, HSBC, which charges option fees, guarantees profits in droughts and floods, so it definitely makes money. You can make money without doing anything.

However, the option premium is not much each time, and the usual trading volume is not large. Therefore, compared with the money that can be earned from shorting the opponent's orders in large quantities, the difference is too much, and Shen Zong can't help but feel regretful. .

But it's a pity that HSBC can't do anything and can only be a bystander.

Yuan Tianfan said: "It is indeed a pity, but although we cannot make money from the options market, we can make a fortune from the stock market."

"You're right."

Shen Porridge nodded in agreement, and then asked: "How many Hutchison Whampoa stocks have we bought now?"

"Since Mr. Lin took over Hutchison Whampoa, Hutchison Whampoa's trading volume has been very large every day. A large number of stocks have been sold, and the stock price has continued to fall. Therefore, our purchases have gone smoothly and we have purchased about 14 million shares so far. "

Yuan Tianfan replied that HSBC started buying Hutchison Whampoa stocks when the gold price fell to about 185 US dollars per ounce, because it knew that Hutchison Whampoa’s futures investment had become short selling, and knew that Hutchison Whampoa had made a lot of money from this investment. So when I saw that Hutchison Whampoa's stock price was below HK$7 per share, I naturally kept buying.

Because HSBC does not have the habit of constantly buying stocks regardless of cost, even if HSBC has bought a lot of stocks recently, Hutchison Whampoa's stock price is still falling, which shows how unfavorable the future of Hutchison Whampoa is among those who hold shares today.

You should know that after Lin Baicheng took over Hutchison Whampoa, he found that the stock price of Hutchison Whampoa was lower than 7 Hong Kong dollars per share, so he asked Anyuan to arrange for people to continue buying, buying 11.9% of the stock, and now holds 49.9% of the stock. Nearly half. If there were no shareholding restrictions in Hong Kong stocks, Lin Baicheng would only buy more.

Even so, when Lin Baicheng and HSBC bought more than 15% of Hutchison Whampoa's total share capital, the stock price still fell, to today's HK$6.58 per share. Without their takeover, it is conceivable that the stock price would have only declined. The fall was even worse.

"Continue to buy until you hold about 5% of the shares."

Shen Zhou said in a deep voice, but after buying 5% of the shares, he could no longer buy it. He had to at least contact Lin Baicheng.

If HSBC bought a large amount of Hutchison Whampoa's stock, Lin Baicheng would definitely guess that HSBC bought the stock because it knew that Hutchison Whampoa's gold futures investment had made money. No one would dare to think too much about whether Lin Baicheng would Guaranteed, if HSBC does not want to lose such a big customer, it must maintain the relationship between the two parties.

"Yes, Taipan."

Yuan Tianfan nodded to express his understanding.

Shen Porridge looked at Yuan Tianfan and said: "I'll have someone check it out later to see if they can find out who is doing a lot of short selling. It's best if they can find out. If they can't find out, forget it. This matter has nothing to do with us, so don't be too pushy." .”

"OK."

"One thing you have to remember is that you must not tell anyone the details of Hutchison Whampoa's gold futures investment. Even if other senior executives of the bank or a director ask you, you cannot spread the news. This is related to the credibility of the bank."

Shen Zong solemnly reminded that although he had alerted relevant personnel who knew the situation before, a large number of short-selling funds appeared. He was worried that some people would find relevant personnel and inquire about details from relevant personnel. Once the news leaked from HSBC, what would happen to them? HSBC's credibility will be a huge blow.

"Don't worry, Taipan. I have always kept the confidentiality regulations in mind and I dare not forget them."

Yuan Tianfan solemnly said that this was not only related to his career, but also required him to pay a large amount of compensation because of the incident.

"As long as you have an idea."

Shen Porridge nodded when he heard this, thinking about telling the other relevant personnel later to let them know the importance of confidentiality.

On this day, the trading volume of Hutchison Whampoa's options market increased significantly. At the same time, at the request of several directors, Hutchison Whampoa held a temporary board of directors. Before Lin Baicheng left Xiangjiang, he specifically asked his sister Lin Shufang to attend the relevant board of directors on his behalf, but to help make decisions. But it was Cheng Yufeng.

When board meetings were held in the past, because they were all related to company operations, Wei Li's business direction did not deviate from Lin Baicheng's general decision-making direction. Therefore, Lin Shufang only needed to vote in favor of Lin Baicheng under Cheng Yufeng's reminder. It was very simple. .

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(End of chapter)