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Gold/Mining/Energy : Precious metal company Warrants -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (372)	2/6/2006 12:23:38 AM
From: Eva	Read Replies (1) \| Respond to of 681

Hello Dave <<But, if NGX blows through the strike price ($3), I could end up making a lot on them...>> I think it will: newratings.com Got some warrants too :) Cheers Eva

To: Canuck Dave who wrote (372)	2/6/2006 4:23:19 PM
From: jcpolar	Read Replies (1) \| Respond to of 681

NGX wts, my comment on this as an experienced options trader is the value of an option or wt decreases rapidly as it approaches expiration. I own NGX but not the wts. If the wt expires this year and is far out of the money it may be better to roll the money you have in the wts into the stock as all you have now is time value. Another consideration are those traders on the other side of your wt trade, like "selling a call" those short the wt (esp if they are brokerage houses) will try to cap the stock at $3 via shorting. If the stock breaks through $3 strike price on volume it will likely move higher quickly as those short the wts will need to cover by owning the stock. Same for a put option, the professionals who stack up on out of the money puts ie the qqq's (see open interest figures at various strike prices) like the 42 strike. this will tend to put a floor on the stock price as those short the puts don't want the stock to go "in the money" easy to see near expirations. jim