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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: siempre33 who wrote (19015)8/23/2006 8:56:09 PM
From: tyc:>  Read Replies (2) | Respond to of 78412
 
Illustrating my ideas of leverage.

Re U308 ! Bullish on Uranium ? Denison Mines has a warrant that doesn't expire until 2011. The strike price is $30 so it's a long way out-of-the money. At $2.50 for the warrant and $14.15 for the stock, gearing is 5.66x. So far out-of-the money, delta is ~ 30%, so leverage is 5.66 * .3 = 1.7x. If the stock goes up 10% the warrant should go up 17% (from this level).


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