Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (19033)	8/27/2006 1:51:34 PM
From: koan	Respond to of 78416

Tyke says: "Postscript: Take BWR warrants which are deeper in-the-money. You would say that the leverage is (1.36/.67) 2x. However, this far in-the-money, its delta is about 69%, so its leverage is actually 69% of 2x, or 1.4x. And 1.4x is poor leverage.... a dollar invested in BWR warrants will perform only 1.4x a dollar invested in the stock. One might as well hold the stock, IMHO." KOAN: Here I disagree with you tyke: BWR wts today are .65 and stock is 1.36-/- 2 to 1 virtual leverage. The wts are .36 in the money, so for .35 one can control twice as much stock. Wts do not expire until Jan 09 I think? As I expect the stock to go to $5+ I will make almost twice as much money holding the wts rather than the stock and if BWR goes to say $10 or $20----well, in any event I own a boatload of BWR wts and no stock.