1. Look for varieties with low premium rate. Premium rate = current price of convertible bonds * conversion price/positive price/100- 1. The premium rate represents the premium after convertible bonds are converted into shares. For example, the premium rate of a convertible bond is 10%, so if the shares are converted now and the price of the shares remains unchanged the next day, then the price of the convertible bonds is expensive now. Therefore, the premium rate must be as low as possible. Negative premium rate, that is, discount, can make convertible bonds profitable after conversion.

Second, look for low prices. Generally speaking, the debt of convertible bonds will play a role below 100 yuan, which is why we see that convertible bonds will rise with the rise of stocks, but if stocks fall, then the decline rate of convertible bonds will be obviously full around 100 yuan.

Third, find a high rate of return. Finding the low price directly is indeed a simple method, but after all, the term of each convertible bond is different, and the interest during the period is also different.