Titan Medical Inc (TMDIF)

[Element41]

I trade the warrants on value discrepancies, but not in the case of flipping for penny profits but rather to replace them with another class during down or sideways movement on the common. In this phase, I prefer the lowest strike, or widest discount to value. When the common starts to go north, I do the exact opposite because the leverage has a higher percentage multiple on the higher strike at a particular point in time. A sort of hedge strategy to protect capital on the way down and being exposed to the highest multiple on the way up. Profits are locked in when Mr. Market overpays during a movement or momentum spasm on the commom by hitting the ask, at a fixed percentage over value, often short sellers looking to cover their position when hit off guard by surprises.
One can buy and hold warrants if they have the mental capacity for wild swings, but thats not a strategy for me, its too speculative. Most commons don’t have more than one class, but that’s what’s unique to TMD and it also helps to know the industry very well. I never exercise, just try to have the best possible exit strategy when commons gain true sustained momentum.