HDRWMB are they expensive, page-9

re: HDRWMB are they expensive ... gypsy Hmmm... I cannot believe you are asking this question ... lol

Any derivative expiring 'out-of-the-money' (OTM) or 'at-the-money' (ATM) is worthless ... (numero zilcho...) you know this ... huh?

Sooo... I figure you are about another issue ...

Another curly one and closer to what I think you are trying to get at ... at what time during the day (expiry) do the above actually become worthless???

For Warrants, if underlying trading ATM, the $0.001 value is often set as MM obligation.

For my own purposes, I have 'tweaked' my Buffalo Cruncher to expire at 4:00pm the previous trading day ... and to show $0.001 or the intrinsic value (ITM) on expiry day.

Expiry is simply expiry ... if you are contemplating a sudden upside movement in the underlying post exercise date ... you are simply in the wrong derivative. Choose another one with a later expiry date ... lol

As for exercising ... assuming 'in-the-money' (ITM) ... more often than not, settlement for Warrants is usually by cash rather than exercise based on closing underlying/warrant price (net intrinsic value) if not sold by holder beforehand. Better to sell as Broker default settlement is only 95%.

Cheers ...


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