Nestle call options

[bargainman]

Is there a standard place to find warrants for sale? The last warrants I bought were AIG and maybe another bank stock back after the crisis, but they always felt like one offs.

[thepupil]

sniffing around this lately, gone nowhere for 5 years. big de-rating on EV/EBITDA basis, less so on P/E basis. just bumping. 

[schin]

On 1/4/2024 at 9:40 AM, lnofeisone said:

One of my favorite trades is buy warrants/sell leaps. This trade works particularly well when the stock price exceeds the warrant strike price and the call price starts to be more expensive than leaps for the same duration.

 

@Inofeisone

 

Is this something you are doing with OXY?

[Dinar]

2 hours ago, thepupil said:

sniffing around this lately, gone nowhere for 5 years. big de-rating on EV/EBITDA basis, less so on P/E basis. just bumping. 

I would not buy it.  While the p/e is understated due to L'Oreal stake, there is essentially zero volume growth (which is obfuscated via RIG) and it is not clear where volume growth will come from.

[thepupil]

yea I'm in the "what exactly does this mean" phase.

 

Quote

RIG represents the impact on sales of volume increases or decreases, weighted by the relative value per unit sold. It is calculated at the level of the individual product reference (stock keeping unit) per distribution channel, by comparing the weighted sales (this year’s volumes valued at the prior year’s prices in local currency) to the prior year’s sales. At the product level, it is therefore primarily driven by changes in volume, while when aggregated at operating segments or Group level, it embeds the impact of the evolution of the product mix. Sales of newly launched products are included from the moment of launch which tends to increase RIG, while products which are discontinued have a negative impact on RIG since the historical sales continue to be included in the prior year comparatives. This reflects in a balanced way the impacts of renovation and innovation and the impact on sales coming from ongoing product rationalization efforts. In hyperinflationary economies, the sales of newly launched products are deflated to the price level of the prior year. As RIG is a component of OG, it excludes the impact of changes in exchange rates and of acquisitions and divestitures (as described in the previous section).

 

[lnofeisone]

9 hours ago, schin said:

 

@Inofeisone

 

Is this something you are doing with OXY?

I didn't do it with OXY. I did this trade with CVE.