Reborn in Hong Kong as a Tycoon

Chapter 166 Options Trading
Monday morning, HSBC, Securities Department.

"What a pity, what a pity!"

Listening to Yuan Tianfan's report, Shen Congee shook his head regretfully.

Just now, Yuan Tianfan reported to Shen Congee that after the market opened this morning, many put warrants of Hutchison Whampoa appeared in the market. One after another, they were eaten up by call warrants.

As of the last trading day of last week, Hutchison Whampoa's closing price was HK$6.58 per share, with a market value of HK$26.32 billion.

However, the put warrants that appeared on the market this morning had an exercise price of HK$6 per share, nearly 9% lower than the current stock price.In other words, if you buy this put warrant, the opponent believes that the stock price will rise, as long as the stock price does not fall below 6 Hong Kong dollars per share, then the person who bought it will not lose money, and there is already a 9% drop in the safe space. .

The travel time of the put option is 30 days, that is to say, if the stock price of Hutchison Whampoa does not fall below 30 Hong Kong dollars per share within 6 days, those who are bullish will not lose money. After 30 days, the stock price will fall again and this option has nothing to do with it. related.

It is precisely because there is a safe space of about 9%, so although there are a large number of put options in the market, there are still institutions and individuals buying one after another, and the transaction value broke through [-] million Hong Kong dollars in a short time. Very rare.

After all, this is the options market for one stock of Hutchison Whampoa, not the trading volume of the options market for the entire Hong Kong stock market.

The reason why Shen Congee felt sorry was that HSBC couldn't buy those put options from the market, and it was a pity that it couldn't make money as a counterparty.

Although Shen Congee still doesn't know why there are so many funds shorting Hutchison Whampoa in the market, and he doesn't choose to sell short from securities companies, but chooses options to short, but he is very clear that Hutchison Whampoa's gold financing through HSBC Futures investment, but made a lot of money.

That is to say, once this news is announced to the public, the stock price of Hutchison Whampoa will inevitably rise sharply, so the opponents who are now doing put warrants are guaranteed to make profits without losing money, and there is no possibility of losing money.

The reason why HSBC cannot buy from the market is because Hutchison Whampoa’s warrant issuing company is HSBC, and HSBC is a third party in the transaction. It can only collect option fees from both buyers and sellers and cannot participate in the transaction.

No matter how the stock price of Hutchison Whampoa rises or falls, whoever makes money by going long or short, anyway, HSBC, which collects option fees, guarantees income in droughts and floods, and it will definitely make money. It can be said that it has made money without doing anything.

However, each option fee is not much, and the usual trading volume is not large, so compared with the money that a large number of short-selling opponents can make, the difference is too much, and Shen Congee naturally feels a pity .

But it's a pity, it's a pity, but HSBC can't do anything, it can only be a spectator.

Yuan Tianfan said: "It's really a pity, but although we can't make money from the options market, we can make a fortune from the stock market."

"you're right."

Shen Congee nodded in agreement, and then asked, "Now, how many shares of Hutchison Whampoa have we bought?"

"Since Mr. Lin took over Hutchison Whampoa, the daily trading volume of Hutchison Whampoa has been very large, a large number of stocks have been sold, and the stock price has been falling continuously. Therefore, our buying has been very smooth, and now we have bought about 1400 million shares. "

Yuan Tianfan replied that HSBC started to buy Hutchison Whampoa stocks when the price of gold fell to around US$185 per ounce, because they knew that Hutchison Whampoa’s futures investment had become a short sale, and they knew that Hutchison Whampoa’s investment made a lot of money this time. Therefore, seeing that the stock price of Hutchison Whampoa is lower than 7 Hong Kong dollars per share, it is natural to keep buying.

Because HSBC does not keep buying stocks regardless of cost, even though HSBC has bought a lot of stocks recently, the stock price of Hutchison Whampoa is still falling.

You know, since Lin Baicheng became the owner of Hutchison Whampoa, he found that the stock price of Hutchison Whampoa was lower than 7 Hong Kong dollars per share, so he asked Anyuan to arrange people to continue buying, and bought 11.9% of the shares in the middle, and now holds 49.9% of the shares. nearly half.If it weren't for the shareholding restrictions on Hong Kong stocks, Lin Baicheng would only buy more.

Even so, when Lin Baicheng and HSBC bought more than 15% of Hutchison Whampoa's total share capital, the stock price still fell, falling to the current HK$6.58 per share.If there is no takeover from the two of them, it is conceivable that the stock price will only fall even worse.

"Keep buying until you're around 5%."

Shen Congee said in a deep voice, but after buying 5% of the shares, he couldn't buy any more, at least he had to contact Lin Baicheng.

If HSBC buys a large amount of Hutchison Whampoa stocks, Lin Baicheng will definitely guess that HSBC bought the stocks because he knows that Hutchison Whampoa’s gold futures investment has made money. No one dares to think about Lin Baicheng Guaranteed, if HSBC does not want to lose such a big customer, it must maintain the relationship between the two parties.

"Yes, Daban."

Yuan Tianfan nodded to express his understanding.

Shen Congee looked at Yuan Tianfan and said, "Someone will check in a while to see if they can find out who is selling a lot of short positions. It's best if they can find out, but it's fine if they can't. This matter has nothing to do with us, so don't force yourself .”

"Ok."

"There is one thing you have to remember. You must never tell anyone about the details of Hutchison Whampoa's gold futures investment. Even if other senior executives of the bank or a certain director ask you, you can't spread the news. It's about the credibility of the bank."

Shen Porridge solemnly reminded that although he had already reminded the relevant personnel who knew the situation before, but a large amount of short-selling funds appeared, he was worried that some people would find the relevant personnel and inquire about the details from the relevant personnel. Once the news leaked from HSBC, it would be harmful HSBC's reputation would be a huge blow.

"Don't worry, Taipan, I have always kept the confidentiality regulations in my heart, and I dare not forget."

Yuan Tianfan solemnly said that this is not only related to his career, but also because he has to pay a large amount of compensation for the incident.

"You're good to know."

Shen Congee nodded when he heard the words, thinking in his mind that he would tell the other relevant personnel to let them know the importance of confidentiality.

On this day, the trading volume of Hutchison Whampoa’s options market increased significantly. At the request of several directors, Hutchison Whampoa held a temporary board of directors. Before Lin Baicheng left Xiangjiang, he asked his sister Lin Shufang to represent him in the relevant board of directors, but to help make up ideas It was Cheng Yufeng.

When the board of directors were held in the past, because they were all related to the company's operation, Wei Li's management direction did not deviate from the general direction of Lin Baicheng's decision-making. Therefore, Lin Shufang only needed to vote for Lin Baicheng under the reminder of Cheng Yufeng. It was very simple. .

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(End of this chapter)