05/06/2026
Put warrants to hedge against near-term downside risk
đź”»Asian markets are looking on track to end this week on a weaker note, led by a 4.8% tumble in the Korean KOSPI Index and a 1.7% fall in the Nikkei225 futures today as of 2:08p.m.
↔ The switch from euphoria to gloom this week has been swift. Both Korea and Japan indices had skyrocketed to fresh record highs only earlier this week, fuelled by the rally in tech and chip names, but are currently on track to surrender all gains to end the week lower.
The Hang Seng Index (HSI) which had joined in the broader Asian rally earlier this week, has also quickly backpedalled on its gains, as it lost 3% in the past two days.
The sharp pullback from fresh record highs is also seen in the U.S.-tech heavy Nasdaq-100, which has retreated 2.2% from its new record high on Wednesday
🌩 The overall mood in the near-term may remain dampened, given the lack of progress in ceasefire talks between the U.S. and Iran after the worst burst of violence in weeks after Iran fired missiles and drones on Kuwait and Bahrain on Wednesday (Bloomberg), as well as newly proposed tariffs by the Trump Administration on 60 countries in relation to "forced labour" (BBC News)
Put warrants tracking the Nikkei225 and Nasdaq-100 are amongst the top warrant gainers this morning, with returns as much as 13.3%.
Investors who have a negative view on markets and wish to protect themselves against falling prices in the short-term may consider hedging with put warrants. Browse them through our Warrant Search tool: https://macq.co/6186B8SjMq
Put warrants allow investors to potentially earn a profit when the underlying falls. Unlike call warrants which tend to move in the same direction as the underlying, put warrants tend to move in the opposite direction to the underlying, increasing in value as the underlying falls and decreasing in value when the underlying rises.
