Wall Street Legend

  Chapter 106 Warrants

  I have a lot of small things to do. I just finished solving Miss Laura's things, and I'm going to do the decoration again.

   I handed over the remodeling matter to a decoration company. According to the other party, it took three days to get the first draft of the design and then make rectification. Because it had already been renovated, there was actually not much that needed to be changed, and it would take about half a month to complete it all. Ye Dongqing had already ordered the company to relocate.

   I am going to wait until next week to let Laura come here. There is everything here. The lower floors of the Puchuan Building are all shopping malls, and the range of activities within three miles is enough for her to survive two months comfortably.

Compared with Midtown, the difference between Downtown and Midtown is more than a little bit. So many companies on Wall Street have collectively fled, mainly because the office and living environment nearby are not as comfortable as Midtown. Office in the building.

  The Puchuan Building that was built more than ten years ago was pretty good, and he was satisfied in every way. After the formalities were finalized and completed, Ye Dongqing's life was about to change.

  January 4th.

Since early in the morning, Ye Dongqing has locked herself in the office. Ms. Vigo hasn't come back yet. Mr. Carnek is wondering what's going on. Judging from the usual behavior of this small boss, it seems that he has never stayed in the company for a long time. in the habit.

On the desk, the computer screen is on, showing all kinds of key oil-related news in the recent period, and the Bloomberg News data terminal screen on the wall not far away shows the recent news of various Ye Dongqing spent a lot of money ordering these materials.

Almost all the documents and data that can be found have been carefully read word by word, trying to find clues from them, and finally came to the conclusion that the possibility of oil price rise is extremely high, and the main reason is that the long-term forces did not earn much. Money, will never give up easily, regional turmoil will also make oil prices higher.

The last success involved luck. Ye Dongqing didn't know whether good luck would come to him, but he had already decided to take out a sum of money, about 10 million to 15 million US dollars, and continue to increase leverage Go long futures, and leave another 10 million US dollars as a backup. If you don't have the confidence to gamble with a full position, it will not be too late to increase your position when there is a good momentum.

In the past three hours or so, he has been busy analyzing various data. It is a bit difficult to think about professional issues. The disadvantages of not systematically learning various financial knowledge have gradually become prominent. It is necessary to read more books recently to recharge , or hire some first-class experts who are not good at actual combat and engage in theory to help check and fill in the gaps.

I have a good understanding of the economic situation at the macro level in the next decade or so, but when it comes to industry fluctuations in a specific period of time, some financial analysts must be better than Ye Dongqing. Whether it is Facebook or the stocks of Freshwater Fund, they all belong to the category of long-term investment , it is unlikely to bring a huge amount of cash in the short term, which makes Ye Dongqing have to find another way to make money.

Looking around, at present, only crude oil futures are the most suitable, foreign exchange trading leverage can be as high as one or two hundred times, and the margin requirement is not high, but there is no suitable opportunity to enter the game, just because I read too little news, I don’t keep it in my mind, I remember Those, will not happen for a few years.

  In addition to these, investing in warrants through the leverage effect of warrants is also the focus of Ye Dongqing's recent attention.

   I rarely came into contact with warrants before. It is also regarded as a leveraged investment method, which is more suitable for freshwater funds to buy bottom Internet industry stocks.

The so-called "warrant" is a certificate of rights that stipulates that the holder of the security has the right to purchase the underlying stock from the issuer at the agreed price within a specified period of time, and an order contract in the field of bulk commodity futures almost.

   There are mainly two types. Equity warrants are issued by listed companies, which will increase the total share capital at that time, and warrants are issued by third-party institutions such as securities companies and banks, which will not increase the total share capital.

  In the past hundred years, countless products have been derived from the financial field. The senior executives of those securities companies and investment banks understand how big the risks are, so they pay more attention to long-term interests.

They invest in stocks, unlike Ye Dongqing's fresh water fund company, which is not like Ye Dongqing's fresh water fund company. For some stocks with uncertain prospects, other institutions or investors can purchase a certain stock from them in exchange for warrants. Price, after paying the fee, pay the remaining balance after the warrant expires, and complete the transaction according to the price agreed on the warrant.

for example.

The stock price of a certain stock in 2002 was ten dollars, the exercise price of the underlying stock warrant was twelve dollars, and the warrant was priced at fifty cents. The agreement was reached on a one-to-one basis, that is, one warrant can buy one share stock.

If an investor buys a warrant, it is equivalent to investing in the underlying stock with a premium of 12 dollars at a price of 50 cents. If the stock rises to 15 dollars within the agreed date, the rate of return is: ( 15-12-0.5)/0.5=500%.

   And like Freshwater Fund Company, buying stocks directly from the circulation market and brokers, the rate of return is: (15-10)/10=50%, which is without considering the handling fee.

All in all, using this kind of leverage to trade in the stock market can use a small amount of funds to hold more low-priced stocks through third-party institutions. As long as you choose a partner, Ye Dongqing doesn't have to worry about making money, which is very suitable for him current shortage of funds.

Last night in the afternoon, he had asked Carneg to contact those big brokerages and investment banks to see who would be willing to sell long-term warrants of Amazon, Netflix, Apple, Paypal, etc. This is a common way in the secondary market To put it bluntly, it is similar to options, just like the difference between peaches and peaches, warrants are a type of options, and they are also suitable for Ye Dongqing to invest, but the principal may be more.

There are not many acquaintances around, so Ye Dongqing has time to study how to make more money. The reason why he only looks at the IT industry instead of investing in the real industry is mainly because the rate of return of the latter is not as high as the former. Opportunities for more money, unless the scale is large enough to avoid risks, there is no need to consider changing the direction of investment.

   Right now.

  He walked out of the office, patted Carnac on the shoulder, and motioned for the company's second-in-command to come with him to talk about things.

  Karnike asked suspiciously: "Can you find me for something?"

   "Well, buy crude oil futures for me, buy it today.

  If possible, it’s best to have a margin of less than 5%, and buy around 15 million US dollars. This time I will keep enough reserve funds, don’t worry. "

  Hearing this, I was terrified. Even a 5% deposit means a leverage of 20 times. Unless you are absolutely sure, you are likely to die.

  Carnek showed a bitter face, scratched his numb scalp, and asked: "Boss, our company has lost a lot recently, and you have to invest in options, can't you be more stable recently?"

  (end of this chapter)