THBR For those following along, the merger vote is today
at 11am. If you own it, you probably know that though or should.
Will become Indie Semiconductor. Warrants are up from $1.50s to
$2.50 in just the last weeks. Another situation I took advantage of
when they took it down and doubled my position off the lows in
warrants. Then I sold some on the huge rip into the $2.50 area. My
core position is in wonderful shape now and I can hold it now as it
is profit heavy.
Posted by retirefire on 9th of Jun 2021 at 09:29 am
Thank you for the SPAC updates. I admit I invested being
somewhat green, that's all on me. I'm ok with my position in DGNR.
Concerning warrents Am I correct in the get preferential treatment
vs. stock? Can one move and not the other? Or even move opposite?
Thanks at your time and discretion.
Warren Buffet and others have used warrants in their strategies
for years now to make outsized gains on what would normally be
pretty average participation. Super smart in using smaller amounts
of capital as well as the leverage saves cash. Of course there are
risks as always, but I like the instrument a lot on the
positions I'm using them on and I've considered the amount of
capital I'm willing to risk before implementing my
strategy.
THBR For those following
Posted by fundamentalvalues on 9th of Jun 2021 at 07:41 am
THBR For those following along, the merger vote is today at 11am. If you own it, you probably know that though or should. Will become Indie Semiconductor. Warrants are up from $1.50s to $2.50 in just the last weeks. Another situation I took advantage of when they took it down and doubled my position off the lows in warrants. Then I sold some on the huge rip into the $2.50 area. My core position is in wonderful shape now and I can hold it now as it is profit heavy.
Thank you for the SPAC
Posted by retirefire on 9th of Jun 2021 at 09:29 am
Thank you for the SPAC updates. I admit I invested being somewhat green, that's all on me. I'm ok with my position in DGNR. Concerning warrents Am I correct in the get preferential treatment vs. stock? Can one move and not the other? Or even move opposite? Thanks at your time and discretion.
You can buy and sell
Posted by fundamentalvalues on 9th of Jun 2021 at 10:21 am
You can buy and sell shares of warrants just as you do stock.
Best to understand the instruments, read, watch a video on them, etc:
https://www.investopedia.com/trading/warrants-risky-but-high-return-investment-tool/
Video, warrants explained for beginners, Patrick does a pretty good job usually:
https://www.youtube.com/watch?v=wTsMD12Cevc
Warren Buffet and others have used warrants in their strategies for years now to make outsized gains on what would normally be pretty average participation. Super smart in using smaller amounts of capital as well as the leverage saves cash. Of course there are risks as always, but I like the instrument a lot on the positions I'm using them on and I've considered the amount of capital I'm willing to risk before implementing my strategy.
Thank you fundamentalvalues
Posted by retirefire on 9th of Jun 2021 at 10:31 am
Thank you fundamentalvalues