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

To: tyc:> who wrote (31603)	2/1/2007 11:06:28 PM
From: Chuckles_Bee	Respond to of 78426

"...but volatility of the stock doesn't necessarily imply similar volatility of the warrant." Why not? At a minimum it should be equal (assuming a strike price that floats with the current share price...(NOT gonna happen))....unless wall street is asleep at the moment. Can you give me an example of a warrant than is not more volatile than the stock? I think we are talking the same thing in different ways? You (and others) are talking sustained share price growth that drags along the warrant providing leverage. I am talking no sustained share price growth, but routine share price fluctuations that also drag along the warrant value in an exaggerated way, so you trade the ups/downs. Either way, the leverage/volatility is the driver to gains, but the difference is time frame and hold vs trade. "...but I'll bet leverage is not attractive for AEMLW" You didn't look at the one year aem/aemlw chart did you? The point of my example was that holding AEMLW (and AEM goes + 40) would give no where near the returns that trading the AEMLW volatility provides. CB.