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Non-Tech : Tarp Warrants

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To: Skywatcher who wrote (2)1/26/2011 8:27:57 AM
From: John Anderfuren  Read Replies (1) of 19
 
Most likely this warrant will be converted to a fractional cma warrant. Since sbibw is trading at only a small premium to strike. This might add 20% time premium once thinks settle down.
Still made 120% for less than 10 month hold and I bought more on the dip, so I was holding 20K on the move back up. Most went out at 3.18. one small lot at 3.5

Best tarps for leverage is vlyw & Bac b warrant below 3
best warrant for leverage bz warrant. I started last year with a purchase model of holding all the warrants with a + weighting toward high leverage. I ended the year with a split. One group that I treat as deep in the money options, but long term holds. (hig,lnc,jpm,sbny,wfc) and one group leveraged vly,bac b, & sbib.

Largest warrant holding bz at 20K. I've done money tree picks (1/2 sells on doubles) ren & ford 10K shares in each left to grow.

Note: we may have over 300 other tarp warrants as the banks pay their loans back, so while a broad diversification is best, it is best to weight by quality going forward.
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