RE:RE:RE:RE:RE:Warrants?Option A Total Cost = $1,000 (2,000 shares at $0.50)
Total Value = 2,000 x $1 = $2,000
Net Profit = $2,000-$1,000 =
$1,000 Option B Warrant Cost = $1,000 x $0.20 = (5,000 shares)
Excercision Cost = 5,000 x $0.65 = $3,250
Total Cost = $4,250 ($1,000 + $3,250)
Total Value = 5,000 (shares) x $1 (stock price) = $5,000
Net Profit = $5,000-$4,250 =
$750 As you can see, in the hypothetical case of a $1.00 sp and warrants at $0.20 and shares at $0.50 - buying shares is more profitable than warrants.
The higher the sp goes, the more profitable the warrants become (relative to straight up common shares).
Tdog420 wrote: Option A- buy 1000$ worht of shares at .50= 2000 shares
option B- buy 1000$ worth of warrants at .20= 5000 shares
if that stock goes to 1$
option A - you have 2000$- profit of 1000$
option B- 5000$ minus (.65 warrant ex price)(5000) = 1750
( 3250 )
makes sense