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can someone educate me on the warrents, I really dont know much about them but I saw they are up HUGE over the past couple weeks. On Dec 26 they were 2.88 and today they were 125.00 I know there is very little volume on them but it must mean something
http://finance.yahoo.com/echarts?s=S...urce=undefined
I have been following that too and saw that today.......
Homer, where are you?
SIRIUS XM RADIO WT09(OTC BB: SIRIZ.OB)
They were up 400% today....
warrent ? What's a warrent ? A warrent for your arrest ? oh, I see, you meant a warrant... LOL.
I believe they have expiration like options and are basically attached to the bonds right ? Although they can be stripped.
Don't they have some bonds due next month ?
It honestly beats me why they are up.
Damn this crap is sometimes too complicated.
these are up over 200% today as well
http://finance.yahoo.com/q?s=SIRIw.OB
What are warrants? - http://www.investopedia.com/articles/04/021704.asp
I dont know but from what i read the stock price going up will raise the warrant price, but will the warrant price going up raise the stock price? let's hope so
Think I got the website right.....there are tons of circumstances and warrants. Basically, a warrant is a bought option on risk, in other words, you pay (at a low cost) that a stock sill do xxx.000 percent by a certain date. If you win, you get paid large and have options....it is complex, so check out the options.Quote:
Originally Posted by trippingthespeculatingpos
Warrants pay more, if right....so for people that are investing into a company, especially to overcome debt, they will take warrants instead of stock.
There are so many variables with warrants, that it is not worth discussing without education.
In 1970, my broker said, don't buy American Airlines , because the diff is too big, he said put a warrant on it and if it goes up in 3 months that I will win. I did and it won! I made megabucks
I don't know enough about warrants, because I am not an Options trader, but what is good is good.
There are at least 9 different kinds, so if you are really that spiffy, then go for them...but not on my advice.
Well, it was fun while it lasted....
Those warrants are down 97.59% today.....should of sold yesterday I guess.
SIRIUS XM RADIO WT09(OTC BB: SIRIZ.OB)
Last Trade: 3.01
Trade Time: 10:35AM ET
Change: 121.99 (97.59%)
Prev Close: 125.00
Open: 3.01
Bid: 3.02 x 500
http://finance.yahoo.com/q?s=SIRIZ.OB
edit. you beat me to it
man i need to stop watching these stocks day by day its killing me, specially days like today :O
Quote:
Originally Posted by Demian
Can someone please try to explain the volatility in the warrants over the past couple of days.
Where is Homer when you need him?
I don't know if even Homer could explain the crazy price swings though...
Day's Range: 3.01 - 3.01
Especially when this was the range for the day.
Homer? Help us out here.......
Same warrants back up to $94 today (3000%) on 1 warrant trading.
http://finance.yahoo.com/q?s=SIRIz.OB
This is some info I posted on Yahoo last night for someone asking about them...
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There are two sets of warrants, SIRIW and SIRIZ..
SIRIZ is what became of the former XMSRZ warrants, which many of us former XM longs traded (and did VERY well with). SIRIW are the former XMSRW warrants.
SIRIUS XM RADIO WT09
http://finance.yahoo.com/q?s=SIRIZ.OB
SIRIUS XM RADIO WT10
http://finance.yahoo.com/q?s=SIRIW.OB
Warrants are like options, they are contracts that convert a preset number of shares at a preset price. The "WT" stands for WARRANT and the "09" or "10" stands for the expiration year.
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More info from another post from last night...
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The SIRIZ.OB are indeed the former XMSRZ.OB warrants that fully vest on 12/31/2009; they began trading as SIRIZ.OB in July when the merger closed... they last traded on 1/22/2009 at a price of $20 each.
The SIRIW.OB are the former XMSRW.OB warrants that fully vest on 3/15/2010; they began trading as SIRIW.OB in July as well, when the merger closed...
Those particular warrants I never did anything with and there are very few of them left outstanding... in fact, I totally forgot about them. They were issued to holders of XM's 14% Notes due 3/15/2010... and had a conversion price of $45.17. There's only a couple million of them outstanding, I don't recall all the conversion info offhand -- and don't care to spend the time looking it up.
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Now, getting to the question of why the price fluctuation??? I can only speculate on it... and my speculation is based on buybacks.
The Z warrants vest on 12/31/2009 and the W warrants vest on 3/15/2009... I can only speculate that the price variation on them is based on buybacks by the company. XM noted in one of their filings that they buy them back with cash or by negotiating and adjusting the number of shares that each contract converts in to. Perhaps Sirius is negotiating with holders and adjusting the share conversion amounts - which would inturn effect the conversion price?
Total speculation -- regardless, there are VERY FEW amounts of these contracts outstanding... I wouldn't see too much into the price swings. When I was heavily invested in the XM Z's, the pricing on them totally reflected and were impacted by fluctuations in the change of the common (not vice versa). But back then, there was also a lot of premium built in to them... for example, I bought a bunch of the Z's for $160 each and sold them for a around $1,200 each a few years later. The common didn't move nearly as much, but still reflected changes in the common - it was just that the warrants had premium in them as well.
Today, the premium should have decayed quite a bit.
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