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Politics : Koan and Ralph Emerson's Far Right and Far Left Whacked Out -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (24)	2/28/2007 8:43:56 PM
From: tyc:>	Read Replies (1) \| Respond to of 103

Thanks for your reply, russet. The other point i would like to make is that it is better or just as good, to look for warrants that are way out-of-the-money. Look at the posting #286 in the precious metal warrants thread. It contains this para: " notice that the BS calculator says that the delta of such an option would be 22%. 22% of the current price of RNG is .33cents. Logically, to my mind, that says the option in the short term offers for 11c the same "bang" as .33 c of common ? If that were true, it would be pretty good eh ? (I suggest that the delta would be more like 15% which would imply the equivalent of .22c for the .11c warrant price, but who am I to argue with BS?) "(Of course the beauty of a warrant lies in the fact that IF the price of the stock climbs the percentage delta also climbs... offering a higher percentage of a higher price. It seems the further the warrant is out-of-the-money,the lower the delta, the BETTER )." EOQ Clearly, the price or RNG stock was $1.50 and the warrant price was .11. (my calculator indicated a delta of 15%) I pointed out the other day that a 36% increase in the THEN price of RNG would put RNG at the strike price, and at that level the warrant price would be double what it was on that day. Well my calculator tells me that a 36% increase from $1.50 would cause the warrant price to grow to .22c from .11c.... again a double ! And the delta would have increased from 15% to 20%..... (compared to today's 35%) (Hope this interests you as it does me. Needless to say these warrants have provided a six bagger and they are still o/m and a good buy) !