Trading Covered Warrants


Well-known member
It's about time that there was a covered warrant thread, so here goes.

I don't know how many of you out there are trading these derivative products but in my humble opinion they offer a very safe spin to the ol' options.

I have recently switched from individual equity warrants to ftse100 warrants through comdirect, the only online broker offering this service as far as I know.

The current deal is very good as there is only £1 commission for trades in SG and Goldman Sachs warrants.

The joy of these derivatives is the ability to calculate the exact risk and gearing etc before capital is employed and obviously the only needs to be a lower amount of capital employed.

I soon intend to trade regularly intraday instead of swing trade as I see this a more reliable if a little boring.

I wonder if anyone else out there trades warrants.......
Hi Tubbs,

I think the spread might not make this worthwhile.

There are certain warrants that have very small spreads, but I take your point. However, with the extra leverage this may not be a problem
Good morning to everybody

I'm new in this community.

IMHO , CW are too much subjected to the "desire" of MM.

I do CW since the early days in Europe in 1997 when only Citibank was issuing them. They were interesting time where you could spot market inefficiency and make profit out of it easily......

But now , IMHO I cannot rely any more on a crystal clear market. At least in the Italian Market.
Options ar by far -IMHO- more suitable for a trader needs, either from the hedging on future perspective (delta neutral, long, short) or just speculative per se.

Thanks for your attention

I'm beginning to agree with you, but there is just too much paper work to get in to options
Yes and need good preparation too and time to adjust your positions......but we dealing with serious stuff- Money- and the market is veryday more difficult and competitive. We actually- IMHO- need not to have even a more complex " icognita" to work with ....the MM.
I hope it Helps.

In it again

I am in a bad trade again - but that's my fault. I think if you use covered warrants with a warrant analyser - available on many websites then there should be no surprises down the track.