S&P sees lowest close in two months
The S&P 500 lost 1.2 percent to 1,084.53, its lowest close since November 6. The index has tumbled 5.7 percent from a 15-month high on Jan. 19 after President Barack Obama called for limits on risk-taking by banks and China moved to restrict lending and cool economic growth. The slump came even as fourth-quarter earnings topped estimates by 12 percent for the 173 companies in the S&P 500 that reported since January 11.
In Europe, Greek bonds tumbled, sending the 10-year note’s yield above 7 percent, on concern the country will require a European Union bailout. The German and French governments denied a report in the newspaper Le Monde that European Union member states are examining ways to provide financial assistance to Greece. (Bloomberg)
How do you protect your downside risk?
A put warrant gives the holder the right (but not the obligation) to sell the underlying share for a fixed price (the exercise price) at a specific future date (the expiry date).
Put warrants allow investors to potentially earn a profit when an underlying share price falls. Unlike call warrants whose prices tend to move in the same direction as the underlying share price, put warrants will tend to move in the opposite direction to the underlying share price, increasing in value as the underlying share price falls and decreasing in value as the underlying share price rises.
If you are bearish and think the market is heading lower in the near term, you may wish to consider the below Put Warrants, which allows you to potentially profit from short term pullbacks in the underlying.
The following put warrants have an exercise price close to the last traded underlying prices:
Put CapitalaMBLePW100402 (JC2W) exercise price $3.80.*
Put DBS MBL ePW100326(J1DW) exercise price $15.00.*
Put UOB MBL ePW100401 (J0JW) exercise price $18.50.*
Put HSI19800MBLePW100330(KE7W) exercise level 19,800 index points.*
Put HSI202000MBLePW100629 (J3FW) exercise level 20,200 index points.*