๐ฅ Put warrants to hedge rising geopolitical tensions
๐ฏ๐ต Some Asian indices such as the Nikkei225 are trading in the red this morning, tracking US indices lower after geopolitical tensions between Iran and Israel escalated.
๐ข๏ธ Oil and haven assets are higher, while the VIX index surged, suggesting expectations of further market swings.
๐จ With the market on alert for more headlines from the Israel-Iran conflict, and a consequent withdrawal in the market's risk appetite, investors who are worried about sharp index/stock pullbacks in the short-term may wish to consider hedging the downside using put warrants.
๐ Put warrants generally move higher when the underlying stock/index moves lower. As an example, Macquarie's trending Nikkei ๐ put warrant FHRW (https://warrants.com.sg/tools/warrantterms/FHRW) is up 12.7% from SGD 0.079 yesterday to SGD 0.089 as of 929AM this morning with the Nikkei December futures down 1.4% to 37,965
โน๏ธ For a full list of put warrants available, investors can refer to our Warrant Search tool (Warrant Search Tool | Singapore Warrants | Macquarie); change the Call/Put dropdown option to Put, and look out for those put warrants with a fire symbol. These put warrants are the trending put warrants i.e. have the tightest spreads and highest liquidity for the tracked underlying.
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Macquarie Warrants Singapore is an issuer and market-maker in Macquarie warrants listed on the SGX.
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