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General Motors Buyback vs. Ford Warrant Expiration
Yesterday, Dec. 19th, General Motors (GM) announced it would purchase from the U.S. government 200 million shares of common stock at $27.50 a share. The previous day the stock had closed at $25.49 and on this news the stock opened at $27.44, traded as high as $27.90, and then settled back in to close at […]
Continue readingFord Warrant Update – Post Three in the Series
With the news that the government is selling a large portion of its stake in General Motors (GM) back to the company at a price above the close yesterday, both GM and Ford opened higher this morning. Ford has now traded back to almost flat at this point (10:20 am EST). With the run higher […]
Continue readingEquity Warrants and Shorting Stock
We recently received a question about warrants and short stock positions. One of the strategies that can be used profitably with warrants is to buy warrants and short common stock. This results in a short position in the common in your brokerage account. The question is can your long warrants now be used to “close […]
Continue readingEquity Warrants, It’s All Relative
Stock, or equity, warrants provide a trader or investor the opportunity to use leverage to trade or invest in the fortunes of the underlying company. To often I’ve seen a comparison of two alternative investment vehicles, buying the common stock or buying the warrants. The story always goes the same, if the stock is trading […]
Continue readingFollowing Ford Warrants into Expiration
Ford stock is acting according to pattern at this point in the warrant expiration cycle. The stock came under slight pressure last week (both 12/13 and 12/14) with increased volume. If Ford follows a normal expiration pattern it should remain relatively flat to down as we head into the last day of trading for the […]
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