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

To: Canuck Dave who wrote (33877)	2/24/2007 2:15:50 PM
From: koan	Respond to of 78421

Yes Dave, you are missing something. It is sort of like one hand clapping-lol. First I would ask you to reread my part regarding BWR wts and then tell me what you do not understand about that example.

To: Canuck Dave who wrote (33877)	2/25/2007 8:35:52 PM
From: AuBug	Respond to of 78421

Warrants can be considered safer than the underlying stock, within reason, since as the stock price drops below the strike price the warrant price drops a lesser percentage. At expiration one can easily loose 100% of their investment in an option (warrant) by having the stock below the strike price even though you would not have lost any thing close to 100% of your investment in the underlying stock. In general owning the stock is less risky but also lacks leverage. When you're right with options you can make a much greater percent return on your money. Definitely put less cash into an option position than you would in a stock position and own several different stock options to further reduce your risk. Also, do not hold to expiration unless you want to pay the strike price to exercise the option. Sell the option before they expire. en.wikipedia.org optionstoolbox.com