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Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: jjrgspab who wrote (8120)	10/12/2018 1:32:43 AM
From: marcos	1 Recommendation Recommended By onepath Read Replies (1) \| Respond to of 8273

Can't say i have deep understanding of it myself, aspects like the greeks just turn the brain to mush in seconds - en.wikipedia.org But some things are clear - options have expiry dates just like warrants, they have strike [exercise] prices, they're traded on something like an exchange [Montreal in this country] ... one thing is, they cost more to trade, you pay your standard commission then there are per-lot fees on top ... and they're far less liquid, have wider spreads, the bids and asks can move away from you so incredibly fast once you show your interest by putting in a limit order [pig-headed stubbornness and a little trick of moving temporarily even more your own way can sometimes overcome this, other times you just have to shrug and move on] agi.wt.a - when there are calls at strikes even lower than this wt, and longer dated as well, trading for less than the warrant then either the warrant is overpriced, the calls are underpriced, or both ... it just happens that the difference with the agi.wt.a has been striking ... mind you, they have far greater liquidity, far narrower spreads, and commission is at your standard stock price ... but let's say the a-wts end up in the money, first week of january, let's say common is at 11.00, this makes a-wts worth one loonie intrinsic ... well the 18APR19 8.00s i got for what, .15 or .20 i think, will be worth three loonies intrinsic - and they will still have over three months life left on 08jan after the a-wts expire Either way, if there's no decent recovery in the sector in the next few months we lose everything in wts/opts, unless you get trade opps in between and somehow take full advantage of them ... i have calls on a number of companies, all bought in the last few weeks, some at prices i wish i could boast about, some i had to pay up, but i don't plan to specify much because they are way too illiquid ... actually don't intend to trade any before the new year, but i do have some on offer at sort of target prices, where they make the rest better than house-money, so it wouldn't be ethical to mention those ... total in all options i have far less than i have in this one warrant - ssl.wt - strike usd4.00, exp 03nov20 ... ssl common [edit - actually sand.amex] just today put them back in the money by an inch or so, and that date is the day of the next US presidential election -g- ... if there were options with same strike and similar expiries, i would definitely be doing some comparison shopping