ncp put warrants to rembrandt., page-3

re: ncp put warrants ... david Hi David ... my view is conservative given you are new to Warrants. I am not expressing a view concerning future movement of NCP Underlying.

The Warrant offerings are somewhat limited here.

NCPWOT is $11.00 PUT 23/04/03 4:1. This Warrant is just OTM with ONLY about 4 weeks to Expiry. THETA (time decay) is savage from now to Expiry and not one I would choose unless I thought a substantial drop in the price of the Underlying was imminent(?).

NCPWMV is $10.00 PUT 29/05/03 4:1. This Warrant is $1.38 OTM which is not excessive and has a reasonable time to Expiry. THETA would be half compared to the above.

If I thought NCP was about to tank I would look for confirmation of a reversal and enter NCPWMV at about $11.00 in that event ... and puts you 2x50c clicks OTM with about 8 weeks to Expiry.

Cheers ... tight stops.


This is only my view ... read the red stuff.