Traxion Sab De Cv Ord Shs GRPOF

RE:Warrant questions

[SnoopDawggyDawg]

you can trade warrants on the open market just as you would a stock! but keep in mind, the volatility would be far greater. consider this: 100k in at $0.15 would net you about 666,666 shares (this is assuming the price isn't driven up by the demand you've put forth on the warrants). today the last warrant was traded at $0.30, so theoretically you have doubled your money. but only about 302,000 warrants were traded today. so now imagine you're trying to sell those warrants. given the low volume, you would certainly drive the warrant price down (supply and demand - only 302,000 were traded in the day but you're trying to offload 666,666 for a profit). so the market is not as liquid. the alternative scenario is that you have 666,666 shares at $0.15, but the demand for warrants is weak and the price drops to $0.10. now, your 100k is worth about 67k on the open market. 

so of course, if you're bullish on TBP then warrants are a fantastic compliment to owning stock. but consider that they are much more volatile if you intend to trade them like stock, and the liquidity is an issue. right now, someone buying a warrant at $0.30 is betting that the stock will at least be $1.61 before a marginal profit is realized. so to buy a bunch of warrants at $0.30 for the purpose of trading them later is certainly risky, but could absolutely pay off handsomely if TBP executes their business plan by 2021.