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Steven Adams
Warrant Trading vs. Warrant Investing, Why Not Do Both
I received an email recently asking why my book focuses on warrant trading and not warrant investing. Wall Street has created very deep and emotional connotations that most individuals have internalized around the terms “trading” and “investing.” Generally, investing is “good” and “trading” is bad. Why would Wall Street spend money (advertising, white papers, academic […]
Continue readingTrading BofA Calls Against BofA Class A Warrants
Continuing my percentage hedge in Bank of America common and warrants, this morning I re-shorted the 450 shares of common I covered yesterday. This trade was executed at $16.51. So I’m back to long 5,000 BACWSA and short 1,750 BAC common stock. I’ve also shorted 10 of the March 14, $16.50 call contracts at $.22. […]
Continue readingCovering Some BAC in the Percentage Hedge
I’ve covered a portion of my BAC short from Friday. I’ve bought back 450 shares at 16.27. You can read the original post that began this trade here. Sharp moves like we see this morning are usually great opportunities to adjust a percentage hedge to either make a profit, or place the hedge in a […]
Continue readingLow Risk Warrant Trading in Bank of America Stock
Several readers have asked me to walk them through exactly how a percentage, or delta, hedge works in a real life example. So, here we go. Over the next several weeks I’ll be doing a percentage hedge in Bank of America (BAC) common stock and the Bank of America Class A Warrants (BACWSA). I’ll […]
Continue readingThe Easiest Warrant Trade You Can Make
In response to my email to subscribers yesterday, and my SPAC post, I received some excellent emails with thoughtful comments and questions. Thank you, you guys are awesome! One of the questions, which I get asked often, is whether you have to be a day trader to trade warrants. The answer is absolutely not. I’ve […]
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