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

BLACKROCK Municipal Income TRUST

Bullboard Posts

Comment by Dontloseshirton Oct 16, 2018 4:52pm

117 Views

Post# 28813578

RE:RE:RE:RE:RE:RE:Shares are a steal

kljhdsfkj wrote: You guys are looking at it wrong. It’s really pretty simple.

Hexo close = 8.23- exercise price 5.60= 2.63 instrinsic vale and .65 time value (3.28 warrants close)
Time value is dynamic and subjective and is a product of days to expiry, underlying volatility and risk free interest rate. Arbitrage opportunities and market imbalance also play a role. To add to that, the thin float and the less illiquid nature of the warrants further add to the distortion.

The exercise of adding the strike price, to the warrants market price in trying to value a stock is backwards makes no sense. I hope your trades aren’t made based on this

Of course not. (We) base our trades on unicorns, rainbows and fairy dust. Thank you for taking the time to explain this to us wise one.

Bullboard Posts

Visionstate set to leverage success in the U.S. market