What I see from that chart is that, at least for RNG, one should buy the warrants when they're near the bottom relative to the underlying shares, and sell them when they catch up at the tops.
Check it out -- if, starting last June, you had sold the warrants every time the red line touched the blue line and bought them every time the red line had gained back 10% after a bottom, you would have made out like a bandit.
I happen to have bought my warrants last August 29 just after the lines touched. If I had followed this formula and waited till early October to buy in, then bought and sold twice more I would have have earned multiples more warrants for the same investment.
Hmmm, the red line just caught up to the blue line again.
But this time's different, right?
Actually, I think it is. The psychological background, which is what I think is what makes koan's spidey senses tingle most, is about as supportive to monster runs as I've seen. You can see it in the volumes, if nothing else.
koan, could you please punch up the same chart for a few other fave warrants like, BWR, EDR, etc.? I'm curious...
LC |
