One of the pages that is visited most often on stockwarrantshq.com is a post on how to find warrants to trade. In the post I list out a few of the ways to develop a list of warrants to watch.
But there is another way to find warrants that isn’t in that post. I’ve been using this way since I started trading warrants, and I’ve recently talked to a few of you who do the same.
One of the most challenging aspect of warrant trading is finding GOOD deals to trade. Several factors have to line-up just right, which is discouraging to many who look to trade warrants. Many move on to the next shiny object instead of waiting for the proper set-up to appear.
When I was trading at a firm specializing in warrant arbitrage there was always a friendly competition when a deal started heating up. Whoever spotted the deal first got to trade it to the exclusion of the other traders.
No big deal when there are a lot of deals, but it became a little more tense when the deals were limited. And, we didn’t have smartphones to waste the time away when we weren’t trading.
Find Warrants in the Most Active List
To find deals that might be good to trade, we were always checking the most active list. I’m sure you can find this on your brokerage site. What you want to check for is the top gainers by %. Since most companies with warrants are low priced, this is the best place to look.
Simply scan down the list and punch each one into your trading account. Most brokers will automatically pull up stocks as you start putting in the symbols.
If the company has warrants those will very likely show up as you’re typing in the symbol for the common. On rare occasions the warrants have a different base symbol than the common, but that’s very unusual.
As I was doing this search this week I came across Bling Charging (BLNK). Blink has a warrant, BLNKW, with a strike price of $4.25, expiring in January of 2023. The company makes electric car charging stations, but don’t really know anything else about them.
The common stock and warrant have been very active the past few days, and this is one worth watching. Earnings are due out of the company any day now, which obviously may impact the stock.
The common is not shortable, but there are options on the stock which have become active in the past few days. If I were trading the options against the warrants, given the spread, I might play market maker, going to the bid if I sold calls on the ask. Rinse and repeat.
Have a great President’s Day weekend! I’m headed to NC to visit family and am looking forward to listening to a book that a trader friend of mine recommended. He said it was a game changer for his trading attitude. I know the author, David Goggins, has a CRAZY story. Any of you guys read it? I’ll let you guys know what I think of it when I get back.