Covered Warrants

[legalbeagle]

I see that nobody has posted a thread on this topic for some time. Does anybody have any recent experience of trading them?

I see that e*trade now offer a dealing service in SG Covered Warrants, and feel that this might be a useful alternative to spread betting for a low initial outlay and limited risk.

Any thoughts?

Thanks

legalbeagle

 

[Dentalfloss]

BEAGLE I THINK THEY MIGHT BE FOR THE AMATEURS.THEY ARE BASIACALLY OPTIONS WITH DEFINED PARAMETERS EXCEPT IN ENGLAND WE CALL THEM WARRANTS.
I THOUGHT THIS TERM IS BETTER SUITED TO THE POLCE WHEN THEY MAKE AN ARREST.
PLEASE CORRECT ME IF I AM WRONG

 

[legalbeagle]

Thanks for that, dentist.

legalbeagle

 

[Dentalfloss]

got a nice booklet from sg warrants explaining all.it seems i was partly wrongthatwarrants are bets on the movement of the underlying security without the delivery of the security like an option.therefore i think it might only be useful if you are limited in youre investment criteria like a sipp,otherwise a cfd spredabet is better.there are very few in number of issues.the best idea is to buy andrew mchatties book on covered warrants.
have any t2w members done well on warrants and what are the strategies?
the only way i can think of is to do the tecnical analysis on the underlying stock short term and buy the appropriate warrant and sell it on when the trend has finshed

 

[jitasb]

One of the fundamental differences between warrants and say CFDs/ Spreadbetting is that your loss is fixed...i.e the amount you paid for the warrant is most you will lose....

There is a covered warrant thread on ADVFN I think...

Ta..

 

[Tubbs]

the warrants man

I have tried to get posts going on warrants but nobody on here wants to here of it. They are a simplified option - but what's wrong with that - that fact that when the price of the warrant is gone is good in my book. I have found a wealth of information on warrants on italian site (in italian of course) but I have also been trading them exclusively for over a year.

There are good ways to trade and bad. If you want more info give just ask.

 

[neil]

Re: the warrants man

I have tried to get posts going on warrants but nobody on here wants to here of it. They are a simplified option - but what's wrong with that - that fact that when the price of the warrant is gone is good in my book. I have found a wealth of information on warrants on italian site (in italian of course) but I have also been trading them exclusively for over a year.

There are good ways to trade and bad. If you want more info give just ask.

Read this chap ( Kenmegsmith)- A Full Time Trader:

http://boards.fool.co.uk/Message.asp?mid=8252922

He did a lot of research and heavy trading of warrants but gave up when market makers tried to rip him off. He is now moving onto CFD's. If he wasn't looking for a SIPP harbour he would be trading US shares.

There is even a "FAQ" section on the site authored by him.

Ask him questions if you wish but read what he has written first since there are quite a few threads devoted to the subject.

Good luck.

 

[Dentalfloss]

I AM LOOKING TO TRADE COVERED WARRANTS IN MY SIPP.I HAVE EMAILED HELENQUON THE TRADEPIT.COM.SHE KNOWS OF SOMEONE ON HER WEBSITE WHO IS HOT ON CW.SHE WILL LET ME KNOW

 

[neil]

DENTIST

SEE THE LINK ABOVE YOURS.
HE IS THE EXPERT-I REFERRED HELEN TO HIM.

HELEN POSTED ON THE SAME SITE.

 

[anley]

Interesting comments by the warrant guy against SG. It doesn't surprise me because EVERYONE is pretty much trying to rip everyone off these days, especially if they know that the other person won't actually realising that it's going on.

The guy above though actually new his stuff so they messed with the wrong person. But many people are there not like the guy above?

It's all very well complaining about it, but the trouble is that 95% of the people who complain would be doing just the same if the roles were reversed. It's sadly the law of the jungle these days.