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

To: marcos who wrote (38301)	4/15/2007 8:15:23 PM
From: LLCF	Respond to of 78409

<This is your field DAK, so you know well the terms and feel protective of them ...> I know it looks that way to you because you don't know... but it's NOT a matter of feeling protective of anything. The fact is that when one says an option is cheap, there is a financial meaning to that just as if someone was talking about a 30 year mortgage. Yes rates are cheap when you're convinced your home is rocketing in value, so you don't really care what rate you pay, who cares citi bank vs Wells Fargo? When talking about value of an option or warrant you need to address the warrant.... otherwise one should say they love the stock and where they think it's going the warrants look like a great buy. Now, of course anyone can say whatever they want, but for the thread, it's nice to note when comments about warrants are really comments about the underlying stock, and when the commentary is that the warrants are priced supper cheap on a valuation basis. What this tells you is that you stand to gain more/ lose less no matter what the stock does than just buying no matter what the price. In fact, for you to say that it doesn't matter about options pricing, it's the underlying... begs the question, why would the person comment on the "cheapness" of the warrants at all? As I said before, they should be truthful and comment that they love the stock and therefore are buying the warrants... that tells everyone that they think the stock is going to move enough that the warrants will end up worth X. IF asked, the person should really know the strike price and time to expiry at least. There is a case on this board, where the person was touting K.to warrants as silly cheap and upon looking into it (they indded looked cheap) we found out they were a 3:1 warrant (3X more expensive than the person thought) and were stupid expensive. Really, the need to talk about how cheap a warrant is without knowing what the hell they're talking about is just wanting to talk the talk without walking the walk. What's so hard about going here: cboe.com Clicking on trading tools, then "options calculator" and filling out the particulars on the warrant and getting a value?? I know, sometimes it's more fun just to blow steam when your makin all sorts of money, you feel like a genius. DAK