Congratulations to all winners for the Fourth Fortnight of the Phillip-Macquarie Warrant Challenge! 1.Jun Yang Teh 2.big nose 3.Kyla

All three winners share 97% gain on HSI put

The fifth round of fortnightly winners for the Warrant Challenge made the same percentage return of 96.9% by trading the HSI put HSI22600MBePW140429 (U1RW). Although all three winners entered their position on different dates and at different prices, their percentage gains on the warrant is exactly the same across the two weeks from 26 April to 9May. This was because the starting price of U1RW on 26 April was taken as $0.032, the warrant’s closing priceon its last trading date of 22 April. U1RW has an expiry date of 29 April and thus stopped trading four days before, as with all structured warrants listed in Singapore. The $0.032 starting price of the warrant measured against the warrant’s settlement price of $0.063 on its 29 April expiry date, resulted in a 96.9% return on U1RW for the period of 26 April to 9 May. The total fortnightly cash prize of $3,750 will thus be split equally amongst all three traders, who will be receiving $1,250 each.

Winners hung onto HSI put warrant until expiry

While all three winners did not actively trade during the fortnightly period, holding onto the warrant until expiry reaped them the unexpected return. Looking closely at their trades, Mr Teh Jun Yang purchased U1RW on 1 April when the HSI April futures were trading at 22,390. Mr Guo Xiu Xing bought the put warrant one week later on 9 April when the HSI futures was at 22,785 while Ms Yin Lili entered into U1RW on 10 April when the index was up another 1% and trading just 90 points short of the 23,000 level. All three traders held on to their investments until the warrant expired on 29 April. On expiry date, U1RW had a settlement price of $0.063 as the HSI April futures closed at 22,213. To learn more about the warrant expiry process and how to calculate settlement prices of warrants, you may wish to watch Episode 14 of the educational videos on Macquarie’s Investor Academy website. Although the returns on their individual trades are different, the Warrant Challenge only takes into account the returns over 26 April to 9 May to compute the fortnightly gains.

Last two weeks to be a fortnightly winner and overall winner!

The latest fortnightly winners are examples of how traders on the Warrant Challenge just need to make the highest-gaining investments for the measured fortnightly period to win. Even if you are a latecomer to the Challenge, you can still become one of the winners of the $3,750 cash prize for the measured fortnightly period of 10 to 24 May. Just start trading on the Warrant Challenge by downloading the TradeHero app for free either on the Google Play Store or iTunes App Store today!