Else Nutrition Holdings Inc T.BABY

warrant 'in the money' what does that mean

[manymoney]

When the warrant is in the money it's when the price you paid for your warrant + the strike price add together , when added ,if the SHARE price is more than sum it's in the money....right now the warrant price and strike price equal a little more than the share price...not quite in the money , but close....last week I traded my 2500 shares for 10.000 warrants...this week the warrant and share price kept pace with each other , almost same rise every day in money value , the difference is I had 10.000 warrants instead of 2500 shares...cleaned up...priceless

[TruthBeTold7]

This post has been removed in accordance with Community Policy

[gasious]

Being "in the money" means that the share price is above the warrant exercise price. In this case the latest share price is $4.50, which is well above the Exercise price of $3.25. With BABY.WT at $1.50 the warrant is relatively cheap. People buy the warrant as it gives more potential % gain than buying the shares, bearing in mind that they have a limited life of 2 years, with all the

[manymoney]

No Sir, in the money for a warrant means WARRANT PRICE +STRIKE PRICE...warrant is $1.50 + $3.25 stike price = $4.75 ...when share price is $ 4.75 it will be in the money....if you bought warrants a week ago we are well into the money and nothing but profit for warrants or shares ahead

[Charles86]

You need to consider the excercise period which translate to leverage which translate to warrant price. Your calculations needs to include that leverage. Yiu calculate your way if the excercise period is at the gates. Right now warrants are worth at least 2.60$. check 'canadian warrants' for details.

[retiredcf]

Actually, warrants are only worth what investors are willing to pay and it isn't always logical. As an example, GRN.WT still has 6 months to go before expiry. In the last week, not only is there no time value assigned but they have sometimes traded below their current intrinsic value. Naturally this makes no sense but I think it is a byproduct of inexperienced investors who hop on board

[gasious]

Thanks for the mention of GRN.WT Reired CF. Looks like a good stock to evaluate! . In this case it looks like there are so many warrants issued (25M) that the owners haven't looked at the conversion and have just looked at the gain in the warrant  price - which has been excellent. 

[canoehead]

I always thought that "in the money" just meant the stock price was above the warrant exercise price. That is it has intrinsic value. Here is the definition via Investopedia - A warrant is in-the-money when the exercise price is less than the current share price. Right now the warrants are a good deal as there is very little to no premium for the 2 years of time value

[manymoney]

Buying warrants for years....cost of warrant + strike price .....full stop !