The market still needs to digest the worries about the Fed’s speeding up interest rate hikes. Although Hong Kong stocks opened higher yesterday, the trend has been volatile since then. The market closed down 125 points to 19925 points.
The weakness of Alibaba (9988) has not changed. It lost 85 yuan yesterday and closed down more than 1% to 84.5 yuan, which was the lowest level in more than two months. The long positions deployed while the stock price is weakening are becoming more conservative. The main consideration is the slight out-of-the-money subscription warrants with an exercise price of 95 yuan or below, and the upward swap is only considered after the price is reached. If you are optimistic, you may consider Ali’s subscription certificate “25232”, the exercise price is 92.05 yuan, and it expires in June this year. The actual leverage is about 6.2 times. If you are bearish, you can pay attention to the Ali put certificate “28464”, the strike price is 66.63 yuan, and it expires in June this year. The actual leverage is about 5.3 times.
Disclaimer: The author is a representative of Credit Suisse (Hong Kong) Co., Ltd., a licensee of the Securities Regulatory Commission, and does not hold any financial interests in relevant listed companies. The content of this article is for informational purposes only and does not constitute an offer, recommendation or procure any person to offer to buy, sell or subscribe for any securities. Prices of structured products may rise or fall sharply, and investors may suffer total losses. There is no collateral for this product. If the issuer becomes insolvent or defaults, investors may not be able to recover some or all of the receivables.
He Qicong