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]Sounds logical as the older warrants close in on expiry, new money will go into the new ones but still a year left for the oldies which will climb with the SP. You could also argue that biting off a big chunk of the olds now is a good play because that .25c, is %50 less at these levels ie 50% more gains if the SP continues on this trajectory.