ssl.wt/ssl.wt.a - that year and a half begins in spring of '14, well a whole lot is going to pass betwixt now and then ... i like time value, won't even consider a wt that doesn't have a decent amount of it, but i refuse to pay that much extra for time value beyond the beyond ... ya know what i mean? - think about it, the strikes differ by usd.40, that goes straight to intrinsic at whatever point you pick along the future Sandstorm chart
Same happened with the ngd a-wts, at some points they were valued by the B-S calcs at near what the common was going for, well that's ridiculous ... they were a great deal when bottom-fished during selloffs, and i sold lots at a third or a quarter of what those 'models' say, then several times got them back cheaper yet ... largely out of them now, fwiw [regrettably, fwiw, missed the last few per cent largely] ... the thing is, imho, that the B-S algorithms or whatever they're called, were designed for options, which tend to expire way faster than some of these wts nowadays, and the value they ascribe to time that's years out there is far too much
I'm just learning wts too, and will never have full grasp of the numbers involved, but if things make logger sense that's good enough ... what i look for in a wt is 1. leverage, 2. time value, 3. value for the money required, and 4. the best value according to a balance of 1-3 aforesaid ... it is assumed that one likes the prospect for the common, otherwise you wouldn't be looking at any manner of playing it ... and you know what i like the best of the three ssl vehicles at the moment? - the common ... given current prices, .66/.38/.27, if i was adding [and i just might], i'd add the common ... secondly the plain-janes, and only then even think about the a-wts ... forty cents intrinsic difference, and summer of '14 sooo far away ... fwiw i hold a whack of the plain-janes, but no interest in trading them, figure they'll 'tag a wheel', as Boolish puts it, next year, and offing them then would be a mistake since they'll go for more the year after ... during the spring of which, they will still have two (2.0) years to run ... also holding the common, 'review each spring' sort of hold, imho
But the above may be mostly affected by personal situation - having cleaned out of BC real estate this spring, i'm facing huge tax issues already april next, for this reason don't take profits in non-sheltered accts, probably not next year either, which will work fine, as the gold/silver run has at least two more years in it imho
amz.v - 'Capital preservation?' - mmm, maybe a bit, but more just the compulsion to play with the little buy/sell buttons ... i'm sold on the project near completely, but have a goodly slice of net worth in it at this point, never hurts to lock in a little profit, ka-ching as Kastel puts it ... according to first principles of the anti-momo school, when a share goes up the chances of it coming back down are greatly increased, all else being equal, which of course it never is ... it's still my largest position, above ogc.to by a hair, but look at the tape between 13 and 14 oct - the 2.75 price point was skipped ... small airhole to be sure, but a gap nevertheless, if it was for any reason to attempt a close of that, my bids would have to be filled first |
