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SB SOL CB

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New Contributor
Anyone have an opinion on this warrant. What would the best strategy be. 250 days left and SOL looking to improve above Ex price.
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22 REPLIES 22
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Super Contributor
principal 1. To be successful in trading warrants, you must NEVER buy warrants that is trading out of the money. Rather wait for SOL to cross R505, before you enter this warrant.It might be a bit more expensive and the delta might be a bit high , but then you have a realistic chance of making money on this warrant. So for now...NO.
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New Contributor
Thanks Preston, will wait to see if SOL hits this mark.
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Super Contributor
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Frequent Contributor
Went short on Friday. Smiling all the way to the bank.
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Super Contributor
he he ...me too....but time to go long i reckon
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Frequent Contributor
I'm not so sure about the long at this stage, but you should definite look to take some profit on your short.
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Not applicable
To be successful in trading warrants, there is absolutely nothing wrong with buying ones that are out the money - especially ones that give you until feb 2017 to be back in the money again. Just know that the warrant is incredibly volatile. But that is the point with warrants, they are volatile, but you only risk the capital in the warrant. You don't get margin calls. So if you think SOL will break the 5000 level again in the next year - then why not? A cheap warrant with large upside potential is probably worth a shot. The trick is that your risk capital to lose is your entire exposure to the warrant.
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Super Contributor
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Frequent Contributor
Will look to go long on R430 again
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Super Contributor
on warrants or cfd's?
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Frequent Contributor
ÇFD's
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Frequent Contributor
Sorry I meant cfd's
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Frequent Contributor
I don't like trading something with a expiry date
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Super Contributor
Okay, sounds good.
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Valued Contributor
expensive comment, all geared trading means time = money .. expiry dates focus that detail
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Valued Contributor
agreed, with time on my side I more than happy to trade a warrant 10%-15% OTM
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Super Contributor
@simon, so are you going to buy this warrants? You do have time on your side now?
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Contributor
What concerns me with this warrant is the conversion rate of 320. (Correct me if I am wrong), but with a conversion ratio of 320, means that if you buy it now at 23c, in Feb 2017 upon expiry, SOL will need trade higher than R574 (30% from where it is today) to have a warrant price of 23c...
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Super Contributor
Correct on R574 or R573.60. You have better odds playing in the casino's. As John F Carter wrote, If the current share price is below the exercise price, those guys who are selling you the warrants , will glad do it , all day long....
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