ALU(Alcatel-Lucent) closed at $13.78 on Friday. A LUTHW warrant excercised today, would cost you $2.75 to excercise and then be worth 13.78(.1952) = $2.69. ALU has been going up pretty steadily since March 25 when it was 11.20, and as soon as the pps reaches 2.75/.1952 = $14.09, then the warrants have real value. Buying LUTHW is essentially a leveraged purchase of ALU, with the warrants to buy a share costing .175/.1952 = .8965 or 90 cents, but if ALU goes up to 14.99, or an 8.8% increase from Friday's closing, you can then excercise your warrants and double your initial investment. And even if ALU went to nothing, instead of being out 13.78 a share, you would only be out 90 cents a share. Huge upside with a lot less risk.