Chapter 106 Warrants

There are little things that can't be done, and I just finished solving Miss Laura's things, and I'm going to be busy with decoration again.

The renovation was handed over to a renovation company, and according to the other party, it would take three days to get the first draft of the design before it could be rectified. Because it has been renovated, there is not much that needs to be changed, and it can be completed in almost half a month, and Ye Dongqing has already instructed the company to relocate.

I'm going to wait until next week to get Laura over, there is everything here, the floors below the Puchuan Building are full of shopping malls, and the three-mile range of movement is enough for her to stay through two months comfortably.

Compared with Midtown, Downtown is more than a little worse, and so many companies on Wall Street have fled en masse, mainly because the office and living environment in the vicinity is not as comfortable as Midtown, and no one wants to stay in a building that does not shine all day.

The Puchuan Building built more than ten years ago is very good, and he is satisfied in all aspects, so after finalizing it and completing the formalities, Ye Dongqing's life is about to change.

On the 4th of January.

Since early in the morning, Ye Dongqing has locked himself in the office, Ms. Vigo has not returned, Mr. Kanek wonders what is wrong, judging from the usual practices of this small boss, it seems that he has never had the habit of staying in the company for a long time.

On the desk, the computer screen is on, showing all kinds of key news related to oil in the recent period, and the Bloomberg News data terminal screen on the wall not far away shows the crude oil futures transactions of various commodity exchanges in the past month, and ordering these materials has cost Ye Dongqing a lot of money.

Almost all the documents and data that can be found are carefully read word by word, trying to find clues from them, and finally came to the conclusion that oil prices are very likely to rise, mainly because the long part of the forces did not make much money, and will not give up easily, and regional turmoil will also make oil prices higher.

There is an element of luck in the success of the last time, Ye Dongqing doesn't know if good luck will come to him, but he has decided to take out a sum of money, use about 10 million to 15 million US dollars, continue to increase leverage to long futures, and leave another 10 million US dollars as a backup, and if he has no confidence to gamble on opportunities, it is not too late to increase his position when he shows a good momentum.

In the past three hours, he has been busy analyzing all kinds of data, and it is a little difficult to think about professional problems, and the disadvantages of not systematically learning all kinds of financial knowledge have gradually become prominent.

I know the economic situation at the macro level for the next ten years very well, 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 those stocks of Freshwater Fund, they all belong to the category of long-term investment, and it is unlikely that they will bring huge amounts of cash in the short term, which makes Ye Dongqing have to find another way to make money.

Looking ahead, at present, only crude oil futures are the most suitable, foreign exchange trading leverage can be as high as one or two hundred times, the margin requirements are not high, but there is no suitable opportunity to enter the game, only to blame too little news, not in the mind, remember those that will not happen in 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.

In the past, I rarely came into contact with warrants, and they are also regarded as a leveraged investment method, which is more suitable for freshwater funds to buy Internet industry stocks.

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

There are two main types, equity warrants are issued by listed companies, which will increase the total share capital, and warrants are issued by third-party institutions such as securities firms and banks, which will not increase the total share capital.

Over the past 100 years, there have been countless products in the financial sector, and the executives of brokerages and investment banks understand how big the risks are, so they pay more attention to long-term interests.

For some stocks with uncertain prospects, other institutions or investors can buy a stock from them to exchange for warrants, agree on a price, pay the fee, wait until the warrant expires and then pay the remaining balance payment, and make a transaction according to the price agreed on the warrant.

Here's an example.

The stock price of a stock in 2002 was $10, the exercise price of the underlying stock warrant was $12, and the warrant price was 50 cents.

If an investor buys a warrant, it is equivalent to investing in the underlying stock with a premium of $12 for a consideration of 50 cents, and if the stock rises to $15 on the agreed date, the return is: (15-12-0.5)/0.5=500%.

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

All in all, using this leverage to trade in the stock market, being able to use a small amount of money to hold more low-priced stocks through third-party institutions, as long as the partner is selected, Ye Dongqing does not have to worry about not making money, which is very suitable for the shortage of funds he is facing now.

Last night, he had asked Kanik to contact the big brokerages and investment banks to see who was willing to sell the long-term warrants of Amazon, or Netflix, Apple, PayPal and other companies, this common way in the secondary market, to put it bluntly, is similar to options, like the difference between peaches and peaches, warrants are one of the options range, and they are also suitable for Ye Dongqing to invest, but the principal paid 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 and does not invest in the real industry is mainly because the return rate of the latter is not as high as the former, and he gives up the opportunity to make more money when he is stupid, unless the scale is large enough and he needs to avoid risks, there is no need to consider changing the direction of investment.

At this moment.

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

Kanek asked suspiciously, "Something to find me?"

"Well, help me buy crude oil futures, buy them today.

If possible, it's best to buy about $15 million with a margin of less than 5%, and this time I'll have enough money on reserve, don't worry. ”

I was stupid when I heard this, even if it was a margin of five percent, it meant twenty times the leverage, unless I was absolutely sure, otherwise it was very likely to die.

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

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