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

To: loantech who wrote (38384)	4/16/2007 9:14:49 PM
From: tyc:>	Respond to of 78418

>>If some of the stocks went down 30-40% overnight a different warrant tune would be sung. Not by me, Tom ! lol. ( Would love to argue the point but I must leave the last word to the moderator.)

To: loantech who wrote (38384)	4/16/2007 11:13:57 PM
From: koan	Read Replies (1) \| Respond to of 78418

Slan: "If some of the stocks went down 30-40% overnight a different warrant tune would be sung." With all due respect, lets look at a case study: My largest silver position EDR wts (and a position I do not recommend as the expiration date is only October 24/07 and they are dangerous!!----still. Stock $5.94 wt: $1.18 Strike $5.25 ---- .74 in the money. Let us say the stock dropped 40% tomorrow instead of 30%, it makes my case more clearly. If you owned the stock, you would have paid $5,940 for 1,000 shares times 40% loss equals $2,376. The most you could lose with the wt is $1,118; and there would still be a little time value, so you would not even lose that. If the stock goes up 40% well---------- But I will not discuss wts here. That is fine. They are dangerous and much more tricky, both good and bad, than many may understand. And I do not want to lead anyone over a cliff or give false impressions regarding their worth or danger. You are probably right slan. Too many people could lose money on wts. And DAK, the wt thread boss, and I, do not agree on wts.