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

To: koan who wrote (19285)	8/27/2006 5:11:08 PM
From: E. Charters	Read Replies (2) \| Respond to of 78412

Another point in favour of Koan's simple leverage equation is the addded factor of the percent expected gain in the stock price versus the per cent move in the warrant. A 3 dollar warrant on a 15 dollar stock represents great leverage due to the needed movement in the stock for a great percent move in the warrant.. it is is relatively easy to envision a 1.00 move in such a stock, which is only 6.6% gain. This may cause a 50 cent move in the warrant at a delta of 0.5, which is a 16.6% gain. This is a restating of the supposed obvious, but it is a point a lot of people miss. The volatility of the stock in certain markets is a strong point in favour of even close to expiry warrants.. EC<:-}