At the risk of emphasizing the obvious here goes:
Post# of 32970
(Total Views: 452)
Posted On: 02/20/2021 10:36:59 AM
At the risk of emphasizing the obvious here goes:
The ratio of stock price/warrant price has been referred to on multiple occasions.....now being in the 3.5x range. As the stock price climbs in a short interval of time this ratio will lessen. And at any given moment in time this ratio is important to ensure that one is buying warrants at a reasonable price.....eg if the stock opens unchanged on Monday but the warrants are jacked up to $1 (ratio 2.3x)....the price is too high (maybe you should sell warrants if that occurs).
My point in writing this is to emphasize that regardless of the ratio at this time and price range, one who buys warrants will control 3-4x as much stock for 3+ years and that is the major consideration. That and the fact that the warrants could end up worthless or close to it.
Much higher risk and reward.
The ratio of stock price/warrant price has been referred to on multiple occasions.....now being in the 3.5x range. As the stock price climbs in a short interval of time this ratio will lessen. And at any given moment in time this ratio is important to ensure that one is buying warrants at a reasonable price.....eg if the stock opens unchanged on Monday but the warrants are jacked up to $1 (ratio 2.3x)....the price is too high (maybe you should sell warrants if that occurs).
My point in writing this is to emphasize that regardless of the ratio at this time and price range, one who buys warrants will control 3-4x as much stock for 3+ years and that is the major consideration. That and the fact that the warrants could end up worthless or close to it.
Much higher risk and reward.
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