RagingBull3 wrote: Sounds SWEET deal you got there... The more you know, the more tools you have in your tool box to make money....... But I decided long ago to stay away from the futures market, options, shorting, leverage ETFs.....etc..
CVE Warrants forcing me to at least think about them a little.
Be interesting to know the Time Value on your options vs the Warrants.
Yesterday warrant price $6.66 Commons $11.92 ..... $6.66+6.54= 13.20 ......13.20-11.92=1.28 Time value on the warrants.
Autofucus111, what's the time value of your options yesterday? Would be interesting to know, the warrants have about 4.5 years left, while your options have 2 years? Might give an idea how the warrants time value might go a little. But your options offer higher leverage, so kind of comparing apples to oranges, but still would be interesting to compare.
All just my opinion/view/thinking/guessing....
autofocus111 wrote: RB Strike price is $4. Contract multiplier is 100. So the option contract is exercisable for $400, and the adjusted deliverable is 78 CVE shares, 6 CVE.WT warrants, and some loose change. See the link below for the option adjustment info. The HSE option series was renamed to CVE1.
https://www.m-x.ca/f_circulaires_en/004-21_en.pdf
I was kinda kidding about the doubly levered part since the warrant portion is small. But I'm nicely levered to CVE share price. If I exercised a contract today, $400 would get me roughly $960 in CVE shares and warrants. If CVE share price doubles from here, I calculate that $400 will get me $1960. Breakeven CVE price is ~$7 when I add in the cost of the option. Too bad I only have a few contracts. But I have CVE shares too so it's all good.
I sometimes use ATM (at/in the money) LEAPS (long term equity anticipation securites) call options in addition to straight share holdings to gain leverage and build up larger equity positions at lower overall investment cost. Options can be a very useful tool and there are many ways to use them. I highly recommend all investors learn how they work.