Put warrants to hedge against near-time downside risk

🔻Asian markets are looking on track to end this week on a weaker note, led by a 6.4% tumble in the Korean KOSPI Index and a 2.5% fall in the Nikkei225 futures today as of 915AM

↔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, fueled by the rally in tech and chip names, but are currently on track to surrender all gains to end the week lower

The $HSI(HSI)$ 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 US-tech heavy Nasdaq-100, which has retreated 2.2% from its new record high on Wednesday

🌩The overall mood in the near-time may remain dampened, given the lack of progress in ceasefire talks between the US 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 $Nikkei 225 Index(N225.JP)$ and $NASDAQ 100(NDX)$ are amongst the top warrant gainers this morning, with returns up to 12.5%, or up to 5.5 times more than the relevant index's drop

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

Put warrants allow investors to potentially earn a profit when the underlying falls. Unlike call warrants whose prices 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

One can use the Exposure Simulator tool to calculate the warrant investment amount in a put warrant to hedge an equivalent level of exposure: https://warrants.com.sg/tools/exposuresimulator

👀Watch a tutorial on how to use the tool here: https://www.youtube.com/watch?v=uT6oleWgr00