Should you ever short warrants? The short answer (get it, the short answer) is NO. It’s simply a way to turn a safe trade, shorting common and being long warrants, into a nightmare. Let’s start with this. CAN you short warrants and make money? Yes, and here’s how. First, the warrant has to be […]
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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. […]
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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 […]
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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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I was asked to expound on a comment I made today on www.stocktwits.com concerning AERL. I believe being long AERL into its rights offering expiration this Friday is a low risk, high probability trade. I am currently working on a free report that will be a given away on this site when signing up to […]
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