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Kicking off the year with a bang! Multiple sectors in Hong Kong's stock market are quietly gaining m
港股窩輪Jenny
joined discussion · Jan 9 09:16

[Warrant Insights] Opportunities in Warrants Amid Hang Seng Index Adjustment! Review of 4 Products with Maximum 2-Day Gains of 46%

The previous trading day (January 8th) $Hang Seng Index (800000.HK)$
The Hang Seng Index closed at 26,149.31 points, down 1.17% for the day, with a turnover of 268.275 billion yuan. The technical indicator summary signal is sell, with a signal strength of 8. Multiple oscillation indicators are mainly neutral, but indicators like MACD and Bollinger Bands show buy signals, creating a divergence between bulls and bears.Based on technical data, the current support levels for the Hang Seng Index are 25,640 points and 25,105 points, while resistance levels are 26,628 points and 27,194 points, respectively. In the short term, it remains within an adjustment range.
The previous day (January 8th) $Hang Seng Index (800000.HK)$ Closed at 26,149.31 points, down 1.17% for the day, with a trading volume of 268.275 billion yuan. Technical indicators summarized a sell signal with strength 8. Several oscillation indicators remained neutral, but indicators such as MACD and Bollinger Bands signaled buy opportunities, creating a divergence between bulls and bears.Based on technical data, key support levels for the Hang Seng Index are at 25,640 points and 25,105 points, while resistance levels stand at 26,628 points and 27,194 points, indicating that the index is within an adjustment range in the short term. In terms of sector performance, technology and financial stocks were the main drags on the index, where $TENCENT (00700.HK)$ Closed at 616.00 yuan, down 1.36%. The RSI was 51, signaling overall neutrality, while short-term moving averages faced pressure; $AIA (01299.HK)$ Closed at 83.85 yuan, down 2.44%. The short-term moving average crossed below the long-term moving average, reflecting a bearish technical outlook; $PING AN (02318.HK)$ RSI reached 77, indicating severe overbought conditions with a strong sell signal. In contrast, the energy sector showed relative resilience, $CNOOC (00883.HK)$ Up slightly by 0.10%, its share price remained above the short-term moving average, with technical indicators showing a buy signal. Overall, the adjustment in the Hang Seng Index was mainly due to the drag from heavyweight stocks, as market concerns about short-term profit-taking combined with downward pressure from some overbought stocks led to index weakness. It is worth noting that...
In terms of sector performance, technology and financial stocks were the main drag on the index, where $TENCENT (00700.HK)$ closed at 616.00 yuan, down 1.36%, with an RSI of 51, showing a neutral overall signal, and short-term moving averages under pressure; $AIA (01299.HK)$ closed at 83.85 yuan, down 2.44%, with short-term moving averages crossing below long-term ones, indicating bearish technicals; $PING AN (02318.HK)$ RSI reached 77, which indicates severe overbought conditions, giving a strong sell signal. On the other hand, the energy sector showed relative resilience, $CNOOC (00883.HK)$ rising slightly by 0.10%, with its stock price holding above the short-term moving average, and technical indicators showing a buy signal. Overall, the Hang Seng Index's correction was primarily driven by heavyweight stocks, as market concerns over short-term profit-taking, combined with downward pressure from some overbought stocks, led to the index's weakness.
It is worth noting that the recent correction in the Hang Seng Index had already been reflected in the warrants market. Let’s review the recent performance of the warrants. As early as January 6, 2026, signs of an impending correction began to emerge, as four bull-bear warrants linked to the Hang Seng Index experienced significant gains over the following two days. Among them, $BI-HSI @EP2603A.P (20720.HK)$ rose by 41% over two days, $BI#HSI RP2801Q.P (61242.HK)$ The two-day increase reached as high as 46%, $BI#HSI RP2804N.P (54444.HK)$ with another product showing a 45% rise; even the one with the lowest gains $BI-HSI @EP2605B.P (23127.HK)$ still achieved a 24% increase, while the Hang Seng Index fell by 2.10% during the same period, perfectly demonstrating the leverage effect of warrants and the profit logic in a bear market.
The previous day (January 8th) $Hang Seng Index (800000.HK)$ Closed at 26,149.31 points, down 1.17% for the day, with a trading volume of 268.275 billion yuan. Technical indicators summarized a sell signal with strength 8. Several oscillation indicators remained neutral, but indicators such as MACD and Bollinger Bands signaled buy opportunities, creating a divergence between bulls and bears.Based on technical data, key support levels for the Hang Seng Index are at 25,640 points and 25,105 points, while resistance levels stand at 26,628 points and 27,194 points, indicating that the index is within an adjustment range in the short term. In terms of sector performance, technology and financial stocks were the main drags on the index, where $TENCENT (00700.HK)$ Closed at 616.00 yuan, down 1.36%. The RSI was 51, signaling overall neutrality, while short-term moving averages faced pressure; $AIA (01299.HK)$ Closed at 83.85 yuan, down 2.44%. The short-term moving average crossed below the long-term moving average, reflecting a bearish technical outlook; $PING AN (02318.HK)$ RSI reached 77, indicating severe overbought conditions with a strong sell signal. In contrast, the energy sector showed relative resilience, $CNOOC (00883.HK)$ Up slightly by 0.10%, its share price remained above the short-term moving average, with technical indicators showing a buy signal. Overall, the adjustment in the Hang Seng Index was mainly due to the drag from heavyweight stocks, as market concerns about short-term profit-taking combined with downward pressure from some overbought stocks led to index weakness. It is worth noting that...
The underlying logic is not complex: when the underlying stock (or index) shows a downward trend, put warrants and bear contracts will rise accordingly, and the higher the leverage, the greater the potential increase. The strong performance of relevant put warrants and bear contracts during this adjustment in the Hang Seng Index was precisely because the market anticipated the possible correction in advance, leading to capital inflows into bearish structured products. Additionally, implied volatility played a key role—higher implied volatility gives stronger upward momentum to warrant prices, which was one of the crucial reasons these four products were able to achieve significant gains.
Based on the current market situation, we have carefully selected two of the most cost-effective products from the warrant pool for your reference:
1. $UB-HSI @EP2603B.P (20529.HK)$ : Leverage of 15.6 times, exercise price at 24,000 points, core advantage being the lowest premium and implied volatility. With the Hang Seng Index currently in an adjustment phase, if it continues to decline, this product is expected to fully benefit from leverage gains, and its low premium and low implied volatility reduce downside risk, making it more stable than other put warrants.
2.  $BI-HSI @EC2605B.C (23128.HK)$ : Leverage of 13 times, exercise price at 28,341 points, with the lowest implied volatility and relatively high leverage. Suitable for investors optimistic about a rebound in the Hang Seng Index; some indicators are already signaling buy opportunities. If there's a rebound, this product can achieve leveraged returns at a lower implied volatility cost.
The previous day (January 8th) $Hang Seng Index (800000.HK)$ Closed at 26,149.31 points, down 1.17% for the day, with a trading volume of 268.275 billion yuan. Technical indicators summarized a sell signal with strength 8. Several oscillation indicators remained neutral, but indicators such as MACD and Bollinger Bands signaled buy opportunities, creating a divergence between bulls and bears.Based on technical data, key support levels for the Hang Seng Index are at 25,640 points and 25,105 points, while resistance levels stand at 26,628 points and 27,194 points, indicating that the index is within an adjustment range in the short term. In terms of sector performance, technology and financial stocks were the main drags on the index, where $TENCENT (00700.HK)$ Closed at 616.00 yuan, down 1.36%. The RSI was 51, signaling overall neutrality, while short-term moving averages faced pressure; $AIA (01299.HK)$ Closed at 83.85 yuan, down 2.44%. The short-term moving average crossed below the long-term moving average, reflecting a bearish technical outlook; $PING AN (02318.HK)$ RSI reached 77, indicating severe overbought conditions with a strong sell signal. In contrast, the energy sector showed relative resilience, $CNOOC (00883.HK)$ Up slightly by 0.10%, its share price remained above the short-term moving average, with technical indicators showing a buy signal. Overall, the adjustment in the Hang Seng Index was mainly due to the drag from heavyweight stocks, as market concerns about short-term profit-taking combined with downward pressure from some overbought stocks led to index weakness. It is worth noting that...
The previous day (January 8th) $Hang Seng Index (800000.HK)$ Closed at 26,149.31 points, down 1.17% for the day, with a trading volume of 268.275 billion yuan. Technical indicators summarized a sell signal with strength 8. Several oscillation indicators remained neutral, but indicators such as MACD and Bollinger Bands signaled buy opportunities, creating a divergence between bulls and bears.Based on technical data, key support levels for the Hang Seng Index are at 25,640 points and 25,105 points, while resistance levels stand at 26,628 points and 27,194 points, indicating that the index is within an adjustment range in the short term. In terms of sector performance, technology and financial stocks were the main drags on the index, where $TENCENT (00700.HK)$ Closed at 616.00 yuan, down 1.36%. The RSI was 51, signaling overall neutrality, while short-term moving averages faced pressure; $AIA (01299.HK)$ Closed at 83.85 yuan, down 2.44%. The short-term moving average crossed below the long-term moving average, reflecting a bearish technical outlook; $PING AN (02318.HK)$ RSI reached 77, indicating severe overbought conditions with a strong sell signal. In contrast, the energy sector showed relative resilience, $CNOOC (00883.HK)$ Up slightly by 0.10%, its share price remained above the short-term moving average, with technical indicators showing a buy signal. Overall, the adjustment in the Hang Seng Index was mainly due to the drag from heavyweight stocks, as market concerns about short-term profit-taking combined with downward pressure from some overbought stocks led to index weakness. It is worth noting that...
A reminder here:Fellow investors who already hold call warrants should set a profit-taking level at 10% below the recent high of the product; those who haven't entered yet must avoid blindly chasing highs and prioritize choosing targets with low premiums and low implied volatility for better safety.
Risk Warning:Intraday fluctuations may be due to short-term speculative trading; without sustained volume support, warrants can correct at any time. Before entering, be sure to check the real-time premium rate and trading volume of the warrant to avoid issues with insufficient liquidity affecting timely buying or selling. Additionally, warrants are high-risk derivatives where the leverage effect not only amplifies profits but also magnifies losses. Investors should participate rationally based on their own risk tolerance.
How long do you think this adjustment in the Hang Seng Index will last? Should we seize the short opportunity with put warrants or wait for the rebound opportunity with call warrants?Feel free to leave your thoughts in the comment section! Want more analysis? Don’t forget 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.
#Hang Seng Index #Hong Kong Stock Market Movements #Warrants Real-time Analysis #Intraday Opportunities #Hong Kong Stock Warrants Jenny #Warrants Selection #Warrants Strategy #Derivatives Hedging #Hang Seng Index Adjustment #Warrants Leverage Effect
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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