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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: koan who wrote (19028)8/24/2006 6:00:19 AM
From: tyc:>  Read Replies (1) of 78416
 
Postscript:

Take BWR warrants which are deeper in-the-money. You would say that the leverage is (1.36/.67) 2x. However, this far in-the-money, its delta is about 69%, so its leverage is actually 69% of 2x, or 1.4x. And 1.4x is poor leverage.... a dollar invested in BWR warrants will perform only 1.4x a dollar invested in the stock. One might as well hold the stock, IMHO.
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