Post by
tobinator01 on Nov 14, 2022 6:13pm
Chart & A Series Warrants
I looked at the Aris chart and jus today, the price sliced through 3 levels of resistance. The next big resistance range is $3.80 - $3.90. Closing today on the high, with high volume portends the stock should be going higher assuming Gold cooperates. Getting over C$4.00 looks to be a big challenge. Aris Gold would repeatedly punch through $2 (equivalent to Aris Mining $4) and get smacked down over a time span of 6 months. I don't know if those that played with the stock are still here but we may find out in the next couple of weeks.
It was 11 days ago when I posted "Relax Folks" after the stock hit $2.69. As of today, Aris has rallied 29% and roughly 6 million shares have changed hands. The institution(s) that bought those large block trades late Friday are collectively up $1 million in one day.
The A series warrants have had a tremendous run rallying 36% in two trading days from 22 cents to 30 cents. Volume today was 204,000, the highest since late July. I use an option calculator based upon the Black-Scholes model. At a stock price of 3.47, 32.6 months to expiry, 3.25% risk free rate and 45% volatility, I calculate the warrant worth 30 cents (today's close). At the end of the month, if the stock is 3.75 the warrant value = 0.35 and at 4.00 the warrant value = 42 cents. The A series warrants offer terrific leverage for the long term investor.
Comment by
7Twiggy on Nov 14, 2022 7:12pm
Good post tobinator, maybe one should be adding a little of both tomorrow.