As I have been trying on options for more than 2 years, I find it is a nice tool for investors who want to protect their profit, leverage the earning, gain at down market. I have mentioned about parallel trade with friends and I have read recently how commonly people use cover call to get the money from the bear market.

Before going through the discussion, I want to point out options and warrants, even they have similar names in Chinese and similar in function, they are totally different things which I think warrants is a dangerous tool to use. I don't want to go through the differences between warrants and options, here is a good summary:
http://www.optiontradingpedia.com/differences_between_warrants_and_options.htm

Unfortunately, in HK, there is no options market.

I shall point out 3 major problems when you trade in warrants (as if you want to do the same for options).

First, warrants are issued by bank or financial institution, the one you are facing I should say more professional, which can control the market more easily. For Options, like stock, it is the buyer/seller like you to interact with you, you can earn as equally as you lose.

Second, Warrants issuers not only can make market when it closes to expiration, they can issue as much warrants as they like, so that the demand would drop eventually and hence the price. In case of Options, when no body wants to sell the Options, its price will shoot up according to the demand, and it is directly related to the stock price.

Third, Warrants buyers cannot short any Warrants, that means they can only buy Call Warrants and buy Put Warrants, as long time ago I have mentioned the options value composes of time value and intrinsic value, same for warrants, users will always buy the time value, which needless to say will decrease when time approaching to the expiration date. As Warrants issuers can always issues warrants at a particular time for a particular strike price and particular expiration date, they can cleverly sell the high time value to users when they can pull it down later.

Options have all the advantages of Warrants, only that there is not Options Exchange in HK.