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BLACKROCK Municipal Income TRUST V.BFK.P


Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.


NYSE:BFK - Post by User

Comment by NEWBIEVESTORon Sep 12, 2018 10:04pm
121 Views
Post# 28609529

RE:Serious Q about warrant. Only normal posters reply please

RE:Serious Q about warrant. Only normal posters reply please Warrants have a time premium that will slowly decrease as it gets closer to the expiration date. During this run the premium has been changing dramatically from $0.60-$1.50 as the SP bounces around thus leaving value gaps. When the SP was $5,60 the warrants were $1.50-$1.60 so that is a good base idea for what the premium is worth.

So if the stock price stayed at $8 for the entire year your warrants would lose roughly 10 cents a month. In the last few months the premium will 20 cents and under so people/funds holding large quantities will exercise instead of selling on the market because you won’t be able to sell without tanking the price.

if you hold your warrant till the end you can phone your broker and have them exercise and sell on the market in one go so you don’t have to have that 5.60 cash
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