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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 (35787)	3/14/2007 12:13:29 AM
From: koan	Respond to of 78431

Tyke, that idea is a GEM! That is exactly the type of thinking, THE TYPE OF MOVE, one can learn to make more money. That is the kind of thinking I like. Most people do not weave their plays like that and once they learn to it changes the whole game. I think it boils down to understandig there is a more sophisticated way to buy and sell these wts adn stocks than meets the eye and are sort of complicated like your idea of insuring a lid on price at the very least over a period of time. I can think of many more like limiting losses on a high priced stock yo want to play. And bottom line I do not see nickel prices falling!

To: tyc:> who wrote (35787)	3/14/2007 6:35:31 PM
From: LLCF	Read Replies (2) \| Respond to of 78431

Yes, fine thinking... as is "this stock is going to the moon and I don't care what the warrant model shows the warrants to be worth because a non normally distributed (one directional up for instance) stock price renders an option models value of limited value". That is fine thinking. But that's not the same as "these warrants are cheap" which implies you're valuing the warrants vs the stock presumably using a standard options/warrant model unless otherwise discussed (like the above). Typically claims like "RNG warrants are cheap" should come with either: 1.) context from previous discussions about E(RNG stock price movement). 2.) including the current IV implied by the warrant price. DAK DAK