Let look at Bursa-CO closing at Friday 1-Oct-2010. Bursa closed at RM8.17 and Bursa-CO closed at RM0.12. Bursa-CO will expire on FEB-2010 which 3 month from now.
The strike price of RM7.7 with ratio 10:1. If today closing price of BURSA RM8.17, Bursa-CO is over value by 73sen (RM8.9-RM8.17).
Will Bursa move up more than RM8.90 in 3 month time?
In 3 month time Bursa able to move to RM8.50 . Bursa-CO still over value by 40sen on current closing price of 12sen. Bursa-CO will be in the money when BURSA is higher than RM8.90. But now there is another Bursa-CQ , strike price at RM7.80 with ratio 8:1.
Is it still worth Risk holding this Bursa-CO when is still left 3 month to go?Will Bursa move up more than RM8.90 in 3 month time?
Base on the candlestick chart, Bursa-CO is start moving downward starting on 22-Sept-10.
Even, RSI chart do show the same downtrend .
For me the risk is too big for me to continue holding on. What say you?
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