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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers
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To: SwampDogg who wrote (16221)7/14/2006 6:32:52 PM
From: koan  Read Replies (2) of 78417
 
With all due respect swampdog you are just plain wrong, but I understand your confusion as it invarably comes up every time I try to explain wts.

Here is how it works. Stock $12.70. 3 wts $2.70. That is 4.7 to one leverage. what I mean by that is that one controls 4.7 as much stock with wts as they would do with stock.

You are right that one will have to subtract time value as it realtes to strike price out of the final value and maybe some leverage value, but one can make a lot of money.

Say gold goes to $2,000 and k goes to $100. Now see how much more you would make with wts than stock.
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