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 […]
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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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In the next few weeks we will have the chance to observe a somewhat unusual warrant expiration. On January 1, 2013 Ford (F) warrants (FWS) will expire, and therefore must be exercised by that date. The last trading day for the warrants, according to a Ford press release, is actually December 24, 2012. What is […]
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The value of a stock warrant can be based on many things, but the starting point for any valuation is the warrant terms. The warrant terms should be used to define a ballpark valuation, but the final valuation of a warrant should be based on much more than simply the terms. While a common stock […]
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If you understand call options and how they work then you are well on your way to understanding a stock warrant. They share many of the same characteristics, at least at a definitional level. Similar to a call option, warrants have a strike price and an expiration date, but unlike a call option neither the […]
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