GREY:BZAMF - Post by User
Comment by
UserErroron Jun 04, 2018 12:31pm
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Post# 28120536
RE:RE:RE:RE:RE:RE:Warrants
RE:RE:RE:RE:RE:RE:Warrants You're looking at it all wrong. I've never even exercised my warrants so you don't need to go through the hassle. For the same price as buying the regular shares, you can currently buy 2 warrants. That means for every penny the regular shares go up, you will get 2 pennies from your two warrants. That's leverage and it's why warrants command a premium, not a discount. You have to put less money in for the same dollar return.
These aren't even callable warrants so if you want to be long TGOD you would want to buy the warrants. If you wanted to put $10,000 into TGOD then you would only have to put $5,000 into TGOD.WT to get the same dollar return. Or, put the full $10,000 to double your return.
Of course, you could lose a lot more, but that's why you simulate a position with less money if you want to decrease risk. Put the other $5,000 into something safe if you want.