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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?


To: MulhollandDrive who wrote (10825)3/9/2011 11:34:49 PM
From: koan  Read Replies (1) | Respond to of 119360
 
<<selling the warrants rather than exercising them seems to be koan's strategy>>

We never exercise the wts. Arbitrageur's do that right before expiration for a few pennies.

I will tell you that learning how to value, and trade wts, regarding all the variables, time, strike price, behavior before during and after the stock moves through the strike, .etc, is more than meets the eye in the beginning.

I have been teaching wts to people for 30 years and to some really smart and highly educated people and it takes a while.

It is sort of like learning to play poker. More to the game than meets the eye.

But, IMO, once you learn to use them, stocks are boring and not nearly as profitable. Although, once a market matures I start trading wts for value stocks, exploration and drill plays, and area plays.