On 14 April 2009, I noticed that commerze-cf premium was only around 6%. It was a low premium call warrants compared to others available call warrants in Malaysia. I bought 40000 shares of commerze-cf on 14 April 2009. Besides low premium, one of the reason I bought the call warrants because Commerze's CEO was Dato' Sri Nazir Razak. He is our prime minister's younger brother. So I thought Commerze could gain some advantage by having that kind of relation with our prime minister.
On 15 May 2009, I sold all the commerze-cf call warrants. I notice that its mother shares (commerze) had reached its resisitance level. I managed to close the position at RM0.165. It was the highest level of the day. Beside that, i wanted to take some profit off the table as i was not confident that the rally could keep going on without a near term correction. Most the counters listed on KLCI moved downward, so i thought i should sell those which move upward and buy those which move downward.
I managed to gain a 50% profit on commerze-cf within a month. If i were to buy commerze instead of its call warrants, I could only manage to gain around 15%.
Ok, enjoy your trading.
GOon
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