Monday, November 30, 2009

A small day trade successfully executed

Having formed the view that the Hong Kong market had overreacted to both the Dubai World debt problems and the potential need for China's banks to raise additional capital, I undertook a small speculation in the warrant market this morning.

I purchased some warrants on the Hang Seng Index (19288) paying HK$.182 per warrant and sold them less than two hours later for HK$0.19. Net of costs, I made a profit of about 2.1%. Given that I was using only a very small amount of money, the gain was not meaningful in the overall scheme of things, but enough to pay for a very nice dinner for two with a nice bottle of wine.

If nothing else, it gave me something useful to do during what is shaping up to be a monumentally boring day at the office.

No comments: