Here goes Trump again - why it's so important to know about put warrants amid this volatile bull market
📉 $Hang Seng Index - main 2510(HSImain)$ tumbled by 5% overnight to close at 24,968 before this morning's 915AM open, after Donald Trump made comments on Friday that he would impose an additional 100% tariff on China as well as export controls on “any and all critical software” beginning 1 November, hours after threatening to cancel an upcoming meeting with Xi Jinping
🇺🇸On Sunday, the US administration signaled openness to a deal with China, but said that the US wants to keep up pressure on China to reverse its most recent trade moves
🇨🇳China responded saying the US should stop threatening it with higher tariffs and urged further negotiations to resolve outstanding trade issues, adding it will not hesitate to retaliate should Washington persist in its measures against Beijing
⤵Big downward moves in risky assets have been a rarity of late. Since the tariff-fueled meltdown in April, the S&P 500 has surged on optimism about AI and hopes for Federal Reserve rate cuts.
💲The gauge is trading near one of its highest valuations in 25 years — leaving a thin cushion for bad news.
💫Meanwhile, Chinese equities have been one of the world’s best performers. The HSI has climbed 31% in 2025 as they benefited from the trade truce with the US in addition to optimism over the country’s growing heft in AI (Bloomberg)
🔺The HSI and $HSTECH(HSTECH)$ have swiftly recovered some losses this morning, with the HSI down just 2.6% to 25,613 while the HSTECH is down just 1.9% to 6,135
✴Put warrants dominate this morning's top gainers, with HSI put warrants rallying 57% to 65% given the HSI's 2.6% fall.
✳HSI call warrants on the other hand, populate the top losers table, losing 50% to 63% of its warrant value.
🔍Investors who believe that the HSI may bounce from current levels can consider using call warrants to capture any upward moves, while those looking for opportunities to hedge against any further pullbacks in the market as it rebounds, can consider put warrants
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