Steven Adams
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Trade a Rights Offering Like a Warrant Expiration
Often a rights offering can be traded in the same way you would trade a warrant expiration. As long as the rights are publicly traded, arbitrage between the common and the rights will result in downward pressure on the common stock. While there is usually little profit for the average investor in the arbitrage, you […]
Continue readingThe Difference Between Stock Warrants and Stock Options is Significant
There are significant and very important differences between stock warrants and stock options. Definitions of stock warrants you can find online provide a basic description of stock warrants. But, not knowing the differences between a warrant and option can severely impact a warrant trader or investor (and by that I mean not knowing what you […]
Continue readingPost Ford Warrant Expiration
We’ve been following the Ford warrant expiration here in very great detail. We described how the stock would likely trade leading up to the final day of trading for the warrants, what the expiration would mean (including a comparison with the recent GM buyback), and what the stock would likely do (move up, haha) as […]
Continue readingGreat Move in Ford Around Warrant Expiration
If you’ve been following our recent discussion around Ford (F) and Ford warrants (FWS) and found that the trade fit your style and risk profile, congratulations! The stock has moved very predictably with the warrant expiration. A buy around $11.50 would have netted over 10% as of the high the common has hit today thus […]
Continue readingFord and Ford Warrants Right on Track for Bounce
The “fiscal cliff” is providing an opportunity in F as it pulls back into the $11.50 range. Today and Monday are the final days for the warrant to trade, and playing a post warrant expiration bounce means getting into the stock today and / or Monday. Obviously it’s better to buy on the price decline, […]
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