Gold and Silver Juniors, Mid-tiers and Producers Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SwampDogg who wrote (19277)	8/27/2006 2:27:16 PM
From: E. Charters	Read Replies (1) of 78412

Warrants decline sharply in value as you get nearer the expiry.. the market forces for most stocks tend to depress the price of the stock so that the warrant declines in value to zero near last exercise date. This is because the stock holders do not want the attendant devaluation/dilution of the stock that the warrant holder's represent.. even given the money they bring to the company at exercise. They are valuable in bull markets as strong metal prices, production figures or spectacular news may drive stock prices. Then often the warrants will have a fantastic delta (approaching 1) as they will rise in price dollar for dollar with the stock price. One major use of warrants is to offset shorting a stock, or as a hedge against a stock rising against a put. hkex.com.hk

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next