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

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To: marcos who wrote (38288)4/15/2007 5:23:15 PM
From: Metacomet  Read Replies (1) of 78409
 
" ... only reasoning i've got, just don't understand the Black-Scholes thing at all ... and apparently it values the epm.wt.a and epm.wt.b at the same price, which doesn't compute imho, and i hold mostly the B-models, still think the As are worth maybe ten to fifteen per cent more, it's only when a larger discount is on the Bs that i buy them [which has been most of the last few months, actually] - imho the higher strike outweighs the slower time-decay at this point, and while that edge will decline over the months it will do so slowly at first."

FWIW, I see this exactly the same way, and also hold only the "B" warrants.

My intuition is that less than a quarter in strike price better be worth a year of time value or the underlying isn't worth looking at in the first place.

Maybe that qualifies me as one of the boobs who shouldn't be playing with things he don't understand.....
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