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港股窩輪Jenny
wrote a column · Jan 21 11:49

[Warrant Perspective] Exploring Opportunities in CATL Derivatives: How to Choose Between High Leverage and Low Premium?

On January 20, stocks in the new energy vehicle battery and related industrial chain showed varied performances without forming a unified trend. In terms of gains and losses, $GANFENGLITHIUM (01772.HK)$ Led the sector with a rise of 2.13% $CATL (03750.HK)$
Slightly up 0.42%; while $BYD COMPANY (01211.HK)$ 、 $GEELY AUTO (00175.HK)$ 、 $LI AUTO-W (02015.HK)$ Decreased by 3.67%, 1.53%, and 1.12% respectively, showing clear differentiation within the sector. From a technical perspective, some stocks are showing oversold signals, while others show divergence signs, indicating an overall short-term adjustment phase, with medium to long-term trends still requiring further confirmation.
CATL: Closing price on January 20 was 479.60 yuan, slightly up 0.42% for the day, with a trading volume of 661 million yuan. Technically, the share price is significantly below the three major moving averages: MA10 (489.51 yuan), MA30 (500.81 yuan), and MA60 (510.52 yuan), indicating a weak trend. The RSI indicator stands at 39, near the oversold zone, while the Williams %R and Stochastic Oscillator indicators have both issued buy signals, and the CCI indicator also suggests buying. Multiple oscillation indicators point to an oversold condition, hinting at the possibility of a technical rebound.
On January 20, stocks in the new energy vehicle battery and related industrial chain showed varied performances without forming a unified trend. In terms of gains and losses, $GANFENGLITHIUM (01772.HK)$ led the sector with a 2.13% increase, $CATL (03750.HK)$ rose slightly by 0.42%; while $BYD COMPANY (01211.HK)$ 、 $GEELY AUTO (00175.HK)$ 、 $LI AUTO-W (02015.HK)$ fell by 3.67%, 1.53%, and 1.12% respectively, showing significant divergence within the sector. From a technical perspective, some stocks showed oversold signals, while others displayed divergence signs; overall, the sector is in a short-term adjustment phase, with the medium-to-long term trend yet to be further confirmed. CATL: Closed at 479.60 yuan on January 20, rising slightly by 0.42%, with a trading volume of 661 million yuan. Technically, the stock price is significantly below the three major moving averages MA10 (489.51 yuan), MA30 (500.81 yuan), and MA60 (510.52 yuan), indicating a weak market pattern. The RSI indicator stands at 39, close to the oversold edge, while the Williams %R and Stochastic Oscillator both signal buy indications, and the CCI indicator also suggests buying. Multiple oscillation indicators point to an oversold condition, implying potential for a technical rebound. As of 11:34 AM today (January 21), CATL was last traded at 482.6 yuan, up 0.63%.Resistance levels are concentrated...
As of 11:34 AM today (January 21), CATL's latest price is 482.6 yuan, up 0.63%.Resistance levels are concentrated at 498 yuan (Resistance 1) and 516 yuan (Resistance 2); a short-term rebound needs to break through 498 yuan to open up space. On the support side, there are two defensive lines at 470 yuan (Support 1) and 448 yuan (Support 2).
Review and Selection of Warrant Products: Focus on Low Premium High Leverage Targets
Performance Review: Looking back at related warrant products on January 15, UBS Group’s CATL $UB-CATL@EP2603A.P (22842.HK)$ , which saw a gain of 9% two days later, while the corresponding underlying stock fell by 2.01% over the same period, creating a contrast between the derivative and the underlying stock performance, highlighting the leverage characteristics and hedging function of warrants, especially when the underlying stock adjusts, put warrants can capture gains.
On January 20, stocks in the new energy vehicle battery and related industrial chain showed varied performances without forming a unified trend. In terms of gains and losses, $GANFENGLITHIUM (01772.HK)$ led the sector with a 2.13% increase, $CATL (03750.HK)$ rose slightly by 0.42%; while $BYD COMPANY (01211.HK)$ 、 $GEELY AUTO (00175.HK)$ 、 $LI AUTO-W (02015.HK)$ fell by 3.67%, 1.53%, and 1.12% respectively, showing significant divergence within the sector. From a technical perspective, some stocks showed oversold signals, while others displayed divergence signs; overall, the sector is in a short-term adjustment phase, with the medium-to-long term trend yet to be further confirmed. CATL: Closed at 479.60 yuan on January 20, rising slightly by 0.42%, with a trading volume of 661 million yuan. Technically, the stock price is significantly below the three major moving averages MA10 (489.51 yuan), MA30 (500.81 yuan), and MA60 (510.52 yuan), indicating a weak market pattern. The RSI indicator stands at 39, close to the oversold edge, while the Williams %R and Stochastic Oscillator both signal buy indications, and the CCI indicator also suggests buying. Multiple oscillation indicators point to an oversold condition, implying potential for a technical rebound. As of 11:34 AM today (January 21), CATL was last traded at 482.6 yuan, up 0.63%.Resistance levels are concentrated...
Selected Recommendations: Two excellent warrant products related to CATL are recommended for investors’ reference:
1.  $BI-CATL@EC2606A.C (16725.HK)$: With a leverage of 5.1 times and an exercise price of 458.88 yuan, the core advantage lies in its high leverage position, with both premium and implied volatility at their lowest levels, offering excellent value for money. Suitable for investors optimistic about CATL's short-term technical rebound, but be mindful of the volatility risks associated with leveraged products.
2.  $JP-CATL@EP2605A.P (23981.HK)$: With a leverage of 7.6 times and an exercise price of 388.68 yuan, both the premium and implied volatility are at low levels, with relatively high leverage. Suitable for investors concerned about CATL's short-term performance, seeking hedging or inverse profit opportunities.
On January 20, stocks in the new energy vehicle battery and related industrial chain showed varied performances without forming a unified trend. In terms of gains and losses, $GANFENGLITHIUM (01772.HK)$ led the sector with a 2.13% increase, $CATL (03750.HK)$ rose slightly by 0.42%; while $BYD COMPANY (01211.HK)$ 、 $GEELY AUTO (00175.HK)$ 、 $LI AUTO-W (02015.HK)$ fell by 3.67%, 1.53%, and 1.12% respectively, showing significant divergence within the sector. From a technical perspective, some stocks showed oversold signals, while others displayed divergence signs; overall, the sector is in a short-term adjustment phase, with the medium-to-long term trend yet to be further confirmed. CATL: Closed at 479.60 yuan on January 20, rising slightly by 0.42%, with a trading volume of 661 million yuan. Technically, the stock price is significantly below the three major moving averages MA10 (489.51 yuan), MA30 (500.81 yuan), and MA60 (510.52 yuan), indicating a weak market pattern. The RSI indicator stands at 39, close to the oversold edge, while the Williams %R and Stochastic Oscillator both signal buy indications, and the CCI indicator also suggests buying. Multiple oscillation indicators point to an oversold condition, implying potential for a technical rebound. As of 11:34 AM today (January 21), CATL was last traded at 482.6 yuan, up 0.63%.Resistance levels are concentrated...
Risk Warning: Warrant products are highly sensitive to timing and volatility; even if they possess superior attributes, they should still be used in conjunction with the underlying stock’s technical trend. Investors should try to control their positions and avoid blindly chasing high-leverage products.
Regarding the oversold signals of CATL and Li Auto, would you choose to 'wait and see for confirmation' or 'test the waters with a small position'? When trading warrants, do you prioritize 'low premium' or 'high leverage'?Share your thoughts in the comments section. Want more analysis? Be sure to follow 'HK Stock Warrants Jenny' for daily updates!
Disclaimer: This article does not constitute any investment advice.
This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We shall not be liable for any loss or damage arising from reliance on the information in this article. Technical analysis merely indicates whether certain technical conditions are met; a comprehensive evaluation of asset performance should incorporate additional data. Trading decisions should not be based solely on the content of this article. Please note that past performance is not indicative of future results.
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Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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