Newstrike Brands Ltd NWKRF

hip warrants - please help

[salmann]

Hi,

Please can some one help me and tell me about warrants. this might sound like a dumb question for people who know how to trade warrants but i am not familiar at all. please can someone answer my two questions below. 

can i buy hip warrants and sell it before it reaches exercise price of $1.75 and take profits like how we trade stocks ?

what will happen if i sell the warrants before the stock reaches exercise price of $1.75 ? 

Thanks in advance

[Ggeeman]

Yes , you can trade them at anytime if there is enough liquidity. They trade only based on time value as hossain said . as time goes on , if hip does not go up however, then they will be harder to sell. They will eventually become cheaper until they are worth nothing .

[GangstersPardis]

hey salmann, for example, lets say you buy 1 warrant today for an excercise price of $1.75 and a expiry date of 2020, so lets say in a week the sp jumps to 2.75, now you can sell your warrent for a 1 dollar profit, so anything over 1.75 is your profit, but if it doesnt go over 1.75 by 2020 the warrants expire and their value is 0, pm me if you need more help

[moet661]

You wont buy the warrant at 1.75... you will buy it at much cheaper. A warrant will give you the option but not the obligation to purchase the underlying stock (HIP shares) at the exercise Price (1.75). If the price jumps to 2.75, the warrant will be more valuable because its owner can exercise it and buy the shares at a lower than market price. The market value of the warrant will also increase -

[PinkyndthaBrain]

well im going all in on these warrants tmrw so lets go hil

[Greatman]

Hi Gangster, Thanks for helping guys out here answer the question with the Warrant. Do you know if I can sell a warrant and get out assuming the price does not exceed the purchase price?

[GangstersPardis]

you can sell any time you want, exactly like the buying and selling your stocks, you are not "stuck" with them, for example if you buy right now for a .14 and it jumps to .40 tommorow you can sell or hold

[Ggeeman]

You are only stuck if it gets close to expiration date and the price is below the strike price . making the warrants useless. You can sell at any time like a stock as long as there is good liquidity

[salmann]

hi gnagster i sent you a pm. thank you for the explanation.