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Re: fuller11 post# 6149

Wednesday, 12/15/2010 8:51:45 AM

Wednesday, December 15, 2010 8:51:45 AM

Post# of 7211
Fuller, the price of a warrant, like an option, is contingent upon the price of the stock you have an option to buy. So when you ask is it a good price, the answer is, it depends if you have a profit or loss. If you want to know if the warrant will trade higher, then you have to figure out what price the new stock will be trading at. That, of course, is dependant on it's future earnings or takeout value. Google stock warrants to get more explanations if needed. Your warrants will trade at a premium to the stock price due to its cheaper price and 7 year life. If the stock is trading at $100.00 and is up $2.00 one day, the warrants coulde be up $3-$4 that same day. Of course the reverse applies as well.
GL
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