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: koan who wrote (38246)	4/14/2007 2:03:40 PM
From: LLCF	Read Replies (1) of 78408

<<Swamp dog, I was speaking if you own either one share of stock: say BWR stock versus one BWR stock wt. Both would have approximately the same upside (as the wts are so deep in the money), but if the company went bankrupt one would lose approximately 1/2 with the wt that they would have lost with the stock. They only paid one half. Because BWR wts are so far in the money time deterioration is almost negligible, at this point. If one puts the same amount of money into the BWR wts they get 2 to 1 leverage, so they will make twice as much if the stock continues upoward. For the same investment dollars.>> Again you're not being consistent, you're touting leverage while dismissing SwamppDog's concerns about leverage. Swampp Dog is correct, if you're buying something for the leverage, you simply lose all your money quicker. Your point about not losing as much money is true because you DONT leverage. Looking at the warrants value using a proper model is a different discussion than leverage... which can be obtained in a number of ways, including simply margin in your account. DAK

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next