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: LLCF who wrote (38234)	4/14/2007 2:56:55 AM
From: koan	Read Replies (2) of 78408

When the silver wheaton B wts (5 year wts) first came out you could buy them all day the first day for a buck. The stock was about $7/8/9/ /10??. I dilly dallied and bought the B wts at $1.63. The leverage on the SLW B wts was tremendous and the wts eventually went on to hit $7+. The U wts onepath , I still remember. bought the first day for about .63/.73, they recently hit $10. Figuring out the value of a wt in relationship to the price of the stock, speculating where the stock will go and in what time frame can be handicapped in relation to how much leverage one is getting. Sometimes wts are undervalued and sometimes they are overvalued. As the big guys do not play them much and the little guys are mostly learning them, there is a large hole where the average guy can learn: "how to value them". And there are concepts e.g. BWR wts: stock $2.17, wts $1.28; strike $1. So the wts have $1.17 intrinsic value which means one can get almost 2 to 1 leverage for just .11 and the wts are good until Jan 09. Why would anyone buy the stock? Also if BWR went bankrupt, the wt holder would lose less. I do not know what you did at the bank, but I know wt value is something one has to learn and can learn (there IS soemthing to learn Dak) and there are many variables to consider, some very amorphous. EDR wts are in the money and giving 4.5 to 1 leverage with 6 months to go. The time value being a mere .10 a month. Today the EDR stock moved up .38 and the wts did not move "because the stock was playing catch up to the wts (fro an interesting reason which is too complicated to go into here)". But if EDR moves another .38 on Monday you will see a large move in the wts (this value was put into the EDR wts today and was an amorphous variable); and if EDR moves another .38 on tuesday you will see an even larger move in the wts. And in such an event the 4.5 to 1 leverage will collapse. I am never quite sure what you are saying? That leverage means nothing?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next