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Gold/Mining/Energy : Canadian Warrants Only

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To: onepath who wrote (14329)	7/16/2010 11:09:57 AM
From: tyc:>	Read Replies (3) of 23087

Hi Onepath... I tried to figure out the leverage of TRX warrants now, but it gave me a head-ache. I wouldn't doubt that TCM warrants offer better leverage. So good luck ! But I did sell 4 naked Jan $13 puts at $4. Here's how I see it: Maximum profit.. I get to keep the entire proceeds of the sale $1600.... if the stock is trading above $13 per share in January (The year's high was over $16) If the price goes up from here, the margin requirement might increase because it's based on 50% of the stock price. The present margin requirement is: 100% of the premium..................... $1600 50% of the underlying..50%9.30400 =$1860 So the maximum yield would be $1600/$3460 = over 46% for about six months. I hope toowit (or somebody) reads this and tells me where it's wrong ! Cant't be too careful with naked puts !

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