InvestorsHub Logo
icon url

tduggan

11/08/12 5:27 PM

#19057 RE: alexah101 #19056

I agree that you can just trade the warrants. My point is that the trade price of the warrant will always take into account the excercise price (5.05) and some premium for time value. If this stock only reaches $10, then the ROI based on today's prices for stock and warrants give a better return on the stock. By $15, the ROI on warrant will have surpassed the ROI on stock. So, which way to go depends on your belief in how high the SP is going to go. The higher the SP, the better the ROI on warrants, but not at $10.