RE: Phew. What a Day! I was wondering why the A warrants were falling with the stock up huge. Thank you sir for some of those warrants. What's kind of funny is I was on the opposite side of your trade. I lightened up on my SSL.WT and went overweight SSL.WT.A. A couple months ago the A warrants were trading at par and I couldn't resist. Then they moved up far more than SSL.WT so I moved money that way and today I took that nice gain in SSL.WT and moved some money back to the A warrants. Interesting how they don't move more in tandem.
According to my spreadsheet if SSL goes above $15 my gain on SSL.WT.A is bigger then SSL.WT and it has an extra year of strike to boot. I'm not saying SSL.WT is a bad buy. Quite the opposite. Both of those older warrants are screaming buys right now ( I also cannot fathom the SSL.WT.B price right now). On my spreadsheet SSL would have to go above $20.50 for SSL.WT.B to provide a better return then the A warrants. I believe in maximizing gain but also in minimizing risk. If SSL had some hiccups and only rose to say $15 you lose money on the B warrants (buying at $2.65 selling at $1) but the A warrants would provide a return of 60% (I know there is a time difference but I ignored it for this simplistic calculation).
Nice week on the markets! That was a lot of fun!! And to think that many analysts were saying get out of the market in mid Aug. This has been a very profitable stretch for me. Hope it continues for a while more :)