6Mo·

Topic: Warrant - general question pricing



I am currently familiarizing myself with warrants and am watching the OS HD2B7V on $RWE (-3,24 %)


The underlying has risen by around 1.3% since 09:00 today.


The OS has risen from €0.057 to €0.071 since 08:00. From 09:00 to 09:05 it lost 0.027€ to 0.044€.


How can this fall in the OS come about even though the underlying is rising?

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5 Commentaires

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The OS has its valuation date on 17.04, i.e. just under a month.
The closer the valuation date comes, the lower the price movements will be when it is well out of the money.

Perhaps the video will help you a little further
https://youtu.be/Ig4RaFlrcs4?si=epQ-Y0B0swAKkA_Q
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Warrants have a variable leverage, which is determined, for example, by the remaining term and the distance to the underlying asset.

Issuers are unlikely to disclose an exact formula.
Unlike factor or KO certificates, the price is therefore not necessarily linked to price movements.
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