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To: Proud Deplorable who wrote (184924)3/14/2010 7:59:56 AM
From: robnhood  Respond to of 313337
 
So you would have only made 25% in one week on these "Overpriced" warrants. Hmmmmm



To: Proud Deplorable who wrote (184924)3/14/2010 11:24:20 AM
From: AuAdvocate1 Recommendation  Read Replies (1) | Respond to of 313337
 
That SCP warrant valuation was calculated with only a 14% implied volatility, which is way too low IMO, but it is the way the Black-Scholes model works. Calculation of volatility is based on past price movements and with recent greater stock movement the volatility will increase over time, but it does not factor in yet.

One needs to use some subjective reasoning when utilizing strictly mathematical models.