PINL:GRPOF - Post by User
Post by
Kayaman08on Apr 23, 2021 12:34pm
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Post# 33055550
C Warrants
C Warrants Insanely mis priced. The A's are trading at .095. 14 months until expiry, .40 strike. That's a 100 vol. The C's have 34 months until expiry, .28 strike, trading at .12. That's a 60 vol. (For the past month they've been around 80 vol) I guess the question is what vol should they be? For a stock that is going to go to $2,$5,$10 or 0... the answer is much higher than 60 vol. -- At 100 vol the C's would be .18. At 80 vol .155. I think the reason they are so cheap is that there are 65mill of them (newly issued) and as the price of the stock rises people just figure cash out of the free money from the bought deal. Also the C's aren't widely known about. (Not even shown on Stockhouse or CAD warrants).
If you are long the B's or A's (which are way worse) it's an obvious switch into the C's. If you are long the stock, you can switch into the C's on a 1 for 1 basis and substantially lower your risk. Or triple down and take your stock proceeds and leverage up into the C's. Either way.. the C's are a ridiculous bargain right now. And yes I'm long a boatload.