The premium rate refers to the percentage change in the price of the underlying stock before the expiration of the warrant (option) in order for the warrant investors to achieve a settlement on the expiration date. The higher the premium rate, the harder it is to win and the greater the risk. The premium rate is an important indicator in the analysis of warrant value. It reflects the deviation of the warrant price and its exercise price relative to the underlying stock price. The level of the premium rate affects the cost of investors. The higher the premium rate, the higher the cost. high.

1. The premium rate refers to the percentage change in the underlying stock price before the warrant expires in order for warrant investors to achieve a balance on the expiration date. The premium rate is one of the data that measures the risk of a warrant. The higher the premium rate, the more difficult it is to win.

2. The premium rate is an important indicator in the analysis of warrant value. It reflects the degree of deviation between the warrant price and its exercise price relative to the underlying stock price. Warrants, as a right to buy or sell underlying stocks, have time value and theoretical value. Therefore it can be used as an alternative to the underlying stock. According to the law of one price, the price of warrants is closely linked to the price of the underlying stock. This article attempts to use the premium rate as a method to analyze the value of warrants, and obtains many interesting conclusions.

3. At-the-money call warrants: Warrant yields fluctuate relatively high, and the premium rate is generally over 30%. Because warrants with low levels of inside and outside the price can easily turn into at-the-money warrants during the fluctuations of the underlying stock. Therefore these warrants have similar performance to at-the-money warrants. Here we study at-the-money warrants together with warrants that have a low degree of inside and outside the money, and collectively refer to this type of warrants as at-the-money warrants. The standard is approximately within 20% of the price.

4. Deep in-the-money call warrants: The premium rate is low and it has a certain equity nature. Except for the at-price warrants mentioned above, the call warrants in my country's warrant market are all deep in-the-money warrants. Due to its high theoretical value, the market price of deeply in-the-money call warrants is also high, so this type of warrants already has a certain equity nature. Its trend is no longer as dramatic as that of parity warrants, but is relatively more stable.

5. Here, we introduce the concept of probability interval: according to the normal distribution, theoretically 95% of the variable values ??are distributed within the range of the mean plus or minus 1.96 times the standard deviation. We use The average and standard deviation of the warrant's premium rate on the 20th day can construct the premium rate operating channel of the warrant.

6. From the above figure, we can easily find that after constructing such a premium rate operation channel, we can basically determine the upper and lower bounds of the premium rate operation of each warrant. When the premium rate touches or exceeds the upper or lower bound, it means that the warrant premium rate will immediately face a correction and return to the premium rate operating channel we constructed.