SEMB.W0016

dragz wrote:Is it over valued at 0.40? My broker advised told me not to buy that share

lbnnirmal wrote:Wt is the date that we can convert SEMB.W0015 in to shares ???

lbnnirmal wrote:Is there any closing date for selling on CSE for the warrant SEMB.W0015 ?? How can I find this kind of information ?? Is it available on CSE site??

dragz wrote:Its a long shot, I wanna buy @ .40 and sell .50,

rijayasooriya wrote:

dragz wrote:Its a long shot, I wanna buy @ .40 and sell .50,

Look how many shares to sell at .50.And also company finacials are not good.May have a run.But do not expect warrent 16 to have a good run.

CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

MJ wrote:Exactly guys, SEMB will have a couple of runs before the maturity of Warrents, But I doubt whether it will make the Warrents attractive.

As Academic correctly said...you need 80 more cents to convert the warrent to a Non Voting share. When the No Voting share is trading below conversion price, who on earth wants to pay money to buy Warrents.

Academic wrote:

CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

Option (warrant) Value = Time Value + Intrinsic Value.

Simply the option has a intrinsic value (IV) if the exercise price (in case of SEMB.W0016, it is 0.80) is less than market price. Since SEMB.X0000 trades at 0.70, there is no IV for SEMB.W0016 at the moment.

However, this does not mean SEMB.W0016 worth zero or negative.

Because time value (TV) of an option never become zero before expiration. Since TV is the value created from possibility of ending up the option (expiring) giving a positive value for the holder (that is if SEMB.X0000 started trading above 0.80, before SEMB.W0016, which is exercisable at 0.80, expires).

Further note that the TV approaches zero as the option reaches expiration date (December).

In summary, SEMB.W0016 would reach zero if SEMB.X continue to trade well below 0.80.

CHASE wrote:

Academic wrote:

CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

Option (warrant) Value = Time Value + Intrinsic Value.

Simply the option has a intrinsic value (IV) if the exercise price (in case of SEMB.W0016, it is 0.80) is less than market price. Since SEMB.X0000 trades at 0.70, there is no IV for SEMB.W0016 at the moment.

However, this does not mean SEMB.W0016 worth zero or negative.

Because time value (TV) of an option never become zero before expiration. Since TV is the value created from possibility of ending up the option (expiring) giving a positive value for the holder (that is if SEMB.X0000 started trading above 0.80, before SEMB.W0016, which is exercisable at 0.80, expires).

Further note that the TV approaches zero as the option reaches expiration date (December).

In summary, SEMB.W0016 would reach zero if SEMB.X continue to trade well below 0.80.

Agreed
with your explanation. But what I mean is why we are buying W16 when x is trading
below the conversion price. For now it’s muck risky to go for W16 for expecting
profit. When I consider the opportunity cost there’s no value for W.16 for me. This
is same worst than SLPL warrant. Please correct me if I’m wrong.

Academic wrote:

CHASE wrote:

Academic wrote:

CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

Option (warrant) Value = Time Value + Intrinsic Value.

Simply the option has a intrinsic value (IV) if the exercise price (in case of SEMB.W0016, it is 0.80) is less than market price. Since SEMB.X0000 trades at 0.70, there is no IV for SEMB.W0016 at the moment.

However, this does not mean SEMB.W0016 worth zero or negative.

Because time value (TV) of an option never become zero before expiration. Since TV is the value created from possibility of ending up the option (expiring) giving a positive value for the holder (that is if SEMB.X0000 started trading above 0.80, before SEMB.W0016, which is exercisable at 0.80, expires).

Further note that the TV approaches zero as the option reaches expiration date (December).

In summary, SEMB.W0016 would reach zero if SEMB.X continue to trade well below 0.80.

Agreed
with your explanation. But what I mean is why we are buying W16 when x is trading
below the conversion price. For now it’s muck risky to go for W16 for expecting
profit. When I consider the opportunity cost there’s no value for W.16 for me. This
is same worst than SLPL warrant. Please correct me if I’m wrong.

Yes it is risky. Though not you, there are people who think this may end up positively (ie, TV). So this may continue to trade above zero due to TV. That is why sometimes TV is referred as Speculative Value. The TV fades as the option approaches exercise date pressing option price to zero if option is out of the money

.