1Année·

Topic: Warrant - general question pricing

I am currently familiarizing myself with warrants and am watching the OS HD2B7V on $RWE (+0,51 %)

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?

4 Commentaires

Enrique@Dividenden_Monteur

1Année

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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Jonas@Aktien-Joe

1Année

@Der_Dividenden_Monteur I was aware of that. And the price movements then take place so abruptly? I had imagined it to be more continuous with the visual curve illustrations.

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Enrique@Dividenden_Monteur

1Année

@Aktien-Joe no, because it is far out of the money.
This is different with knock-out certificates, as the leverage changes.

If RWE were now above €34, you would probably see more price movement.

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Jonas@Aktien-Joe

1Année

@Der_Dividenden_Monteur okey - I'll have to think about it more carefully. The topic of in / on / out of the money and the effect on the price of the OS doesn't seem to be fully understood by me yet. Thank you :)

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