a strategy for amp Before I outline the strategy, I must point...

a strategy for amp Before I outline the strategy, I must point out I have already done it, so it will obviously not work.

The Strategy...

Buy AMPIGC $6.50 Instalment warrants and 4 X AMPWOV $7.50 put warrants. Total cost around $2.00 per share.

With this strategy, but with a 20 cent dividend on the AMPIGC and a minimum return of $1.00 at expiry if the shares remain between $6.50 and $7.50, your loss is limited to about 80 cents (ignoring imputation credits on the dividend).

Now for the potential upside.... If there is one thing you can say about AMP, it is volatile. If it continues to fall out of the sky, you collect bigtime on the AMPWOV.
If it turns around you collect on the AMPIGC. IF either of these things happens significantly before the expiry dates, you collect part of your investment in the losing warrant as well.

All we hope for is AMP to not stay around $7.00 for the next two months.

Looks like a reasonable bet to me. If you have a leaning towards more falls, buy more AMPWOV. If you think otherwise, buy more AMPIGC.

Which brings me to another point. Does anyone have an Excel spreadsheet formula that gives the value of a warrant using the Black-Sholes formula? I have books which explain the formula, but I cannot find a way of translating the formula in the book into an Excel formula.

Thanks in anticipation...