RE:RE:RE:RE:RE:Get 2 N.WT for the price of 1 N.WT.ASasha.Nik wrote: SixFiction wrote: typo, made a correction in caps below
So What is your prediction? Currently, sitting at 2 n.wt for 1 n.wt.a. To say I am wrong is to say that you believe the ratio between them will either INCREASE or stay the same. Is that correct? Obviously this is underpinned by the price action of the original stock, which at this time I think we can agree has positive momentum.
Sasha.Nik wrote:
SixFiction wrote: You heard it here first. Mathematically as we approach "the money" the ratios between them will decrease. It is currently about 2.0 n.wt for every n.wt.a. Compared to the stock there is 2.77 times leverage with n.wt.a or 5.75 times leverage with n.wt, you decide...once again, i love both, and used to be ALL n.wt.a, but at these prices I have been swapping some for twice as many n.wt, will likely switch back once the price of n.wt catches u to where it should be, and end up with more overall.
INCORRECT!
Warrants trade like options and their pricing formulas are the same. Time value and no acceleration do NOT magically disappear from the valuation IF and WHEN we get to 3.15.
YES - I'm betting the price differential will WIDEN from now until n.wt expires next year. ppl. would much prefer having extra 4 years of time value and no acceleration for extra 25c.
As retail starts to realize this and chases the new warrants highter, the gap widens
ALL ASSUMING WE KEEP GOING UP ON SP[/quote]
As Sasha infers here , the time value is the major component that makes for the difference in price between the two warrants. Why buy something that will expire in a year when you can buy something good for another 4 years. Those that still don't get it , do some research on options (as they work pretty much the same) to understand how they are valued.