IVL13CB : Should come with a health warning on the packet.
March 9, 2011 Leave a comment
IVL13CB is not something we think is worth the risk to trade, but we are in the minority, with plenty of punters enjoying the frequent market maker led ramps in such instruments.
The recent breakout at 0.72 has 0.87 as its next major barrier, but beware, the last time it hit such levels it fell to 0.49 over the next two week. A breakout above 0.87 will probably see it hit 0.97, maybe 1.00 or so. We see further resistance at 1.09-1.12 then significantly at 1.25
These warrants are a cancerous type of security, and are far too dangerous in our view. Indeed we think a blind punt on the FX market is a less risky choice. The chance of losing money on these warrants is just too high.