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Re: sonicty28 post# 46179

Friday, 12/15/2017 5:27:38 PM

Friday, December 15, 2017 5:27:38 PM

Post# of 108192
Sonicty28 asked: SO one last dumb question about warrants. So if I purchased some for 1$, and lets say the price jumps to 2$ tomorrow, if I sell them I will lose money now because its not over 5$? Or would i get the difference between it being at 1$ and 2$?

If you "sold" them at 2$ you would get just that - $2 per warrant. However, if you exercised it at its $5 strike price you would have the common stock per each warrant exercised. That would normally be about $6+ (give or take) according to recent activity. This wouldn't be recommended because until it gets in the $9+ common stock price range, then the common stock would be closer to being up to $5 more than the warrant.
The warrants are a "Go big or complete bust" kinda bet, in that if the price goes up greatly you were able to get more shares at the entry point. The ratio can increase greatly, but the $5 strike will always be the same.
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