WARRANTS issued on the movements of stock market indices dominated trading on the derivatives front last week.
The four most popular warrants were all linked to Hong Kong's Hang Seng Index, given the benchmark's volatile swings last week.
The most actively traded warrant was a put contract on the benchmark issued by Macquarie Bank with a strike level of 13,200 and expiring on Dec 30.
The contract, which saw 28.6 million units changing hands, lost six cents, or 19 per cent to 25.5 cents.
A call warrant also issued by Macquarie with a strike level of 13,400 and expiring on Dec 30 rose three cents, or 7.1 per cent to 45 cents with 25 million units traded.
Investors are also turning their attention to warrants issued on the local benchmark Straits Times Index (STI). The local stock market was down 4.24 per cent last week at 1,659.17.
It was closed for a public holiday yesterday.
A put warrant on the STI issued by Deutsche Bank, which has a strike level of 1,700 and expires on March 2 saw 2.3 million units traded. It lost 1.5 cents, or 3.3 per cent to 44 cents.
Equally popular was a call warrant from the bank which has a strike level of 1,650 and expiring on March 2.
It is up 1.5 cents, or 3.4 per cent to 45 cents.
A call warrant lets an investor buy into a stock or index at a preset price over three to nine months and is for those bullish on the stock.
A put warrant lets an investor sell the stock or index at a preset price.
Source: The Straits Times
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