RE: RE: RE: 2014 warrants
Hi Flymar,
A warrant gives you the right to buy SSL at a specifiic price
for a specific length of time
But you do not ever need to exercise (buy the stock SSL)
to make more money than `just' buying the stock.
the 2014 warrant lets you buy ssl at a fixed price .60
for until march 2014.
so if ssl goes to $2.40 that is a 3x if you paid 80 cents for the stock.
if you bought the warrant at .37 and the stock went to $2.40 the value of the warrant would be
$2.40 minus .37 = 2.03 PLus a value for time left until March 2014 the time value could be .20 or .60 or even higher.
So if the time value was say .56 the warrants total value could be $2.59
and you paid .37 so you made 7 times your money (7x .37) not 3 times your money.
If the stock does not go up as time moves along towards march 2014 expiration of the warrant you could lose on the warrant. Warrants rarely are as attractive as this 2014 warrant imhumble opinion.
So you only want a warrant on a high probability of success stock.
dyodd
Soccer