Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: 4C who wrote (104291)	1/27/2008 1:20:33 AM
From: koan	Respond to of 313017

Wts are worth investing time in learning SF. Over the years the vast amount of the money I have made has been with wts. And once you learn them, you will find that they are like magic. They can be dangerous for sure, but lke a swaord can also offer great affect and operate multidiminsionally-lol. Many people undervalue them and so you get lots of quantifiable bargins-lol e.g. PDL wts for .50, 2nd day and BCM wts for $1.10. The market mis priced both of them for a few days. It is common, for the market to misvalue wts and I feel confident both onepath and calgary lady will attest to that. Also, they make it safer to take big positions with much less risk on the downside, and leverage on the upside, once you learn how to use them. And learning how the two forces of time value and intrinscic value work, allows you to do magic in terms of holding long term wts (e.g. 5 year) out of the money, controllling the stock for 5 years at a determined price and which will move up with the stock, but not so much down with the stock because time value is more of a constant which is mostly only triggered when the stock is moving up but not so much when the stock is moving down. Sort of like a Zen puzzle-lol. And we all know zen puzzles are important-lol. They give you leverage on the upside and lesser risk on the downside and you can have more confidence in the companies because they are majors and in production and making money, and the big hedge funds, sovergein funds and companies pour the really big money into them when they are rolling and only into them. Few juniors. So right now,in my opinion, that is the play and an opportunity, and is a free lunch so to speak-lol. Just like learning how to play parcheesi-lol