RE:RE:Anyone who plays warrants..
@retiredcf, just so you aware, the gold warramts saved my portfolio. Take a look at AGB.WT (up 54% last 3 months) and ALO.WT (up 255% last 3 months). I was watching and jumped in thankfully as energy has been going into this bear market. Yes DNA could go back to the strike price but it likely won't. The upward move doesn't really have to do with the current price of gold; in the last month DNA has risen 21.1% while gold was down 1.2%. Its a re-rating, not commodity priced based. Blackbird didn't rise because of a rising oil price, they rose because of a re-rating as well. It's very rare to find a warrant with this much leverage because there is no time value and the warrants get dragged up 7.32% for every 1% rise in the stock (7.32x leverage). The leverage of DNA is constant because of no time value while BBI warrants change leverage based on how high the stock goes because of $0.105 of time value. In comparison, if BBI went to $0.60, the warrants conversion value would be up exactly as much as the stock (1x leverage = no leverage). If BBI went to $1, the warrants would go up only 1.65% for every 1% rise in the stock. That is why I say its very rare circumstances for 7.32x leverage. My 2 cents..