Sunny Optical Technology (Group) Co., Ltd. Warrant

The **Sunny Optical Technology European Warrant December 2025** (Call) is a derivative financial instrument linked to the performance of Sunny Optical Technology (Group) Co., Ltd., a leading global manufacturer of handset camera modules and optical components. This warrant grants holders the right, but not the obligation, to receive a cash settlement based on the difference between the underlying stock’s price and the predetermined strike price of HK$89.50 at expiry. As a European-style warrant, it can only be exercised at maturity and does not involve physical delivery of the underlying stock. Key features include an implied volatility of 62.36%, a moneyness of -32.30% (out-of-the-money), and an effective gearing of 3.63x, which amplifies exposure to price movements while capping losses to the initial investment. The warrant primarily serves as a hedging or speculative tool for investors seeking leveraged exposure to fluctuations in Sunny Optical’s stock price without direct equity ownership. Its role centers on facilitating risk management and price discovery within the optics and consumer electronics sector, reflecting market sentiment toward supply chain dynamics and smartphone industry trends.