Make money out of Covered Warrants

It defines a derivative warrants and listed on the .

It 'a contract award is very similar to an option and can be traded in the regulated market, except that unlike options can not be sold in the open, that you can not sell if not held, so not having the authority to make benefit from the reduction of volatility and the passage of time.

A warrant is a contract award that confers the right but not the obligation, to subscribe for the purchase (these ) or sell (these Warrants) of some underlying financial asset at a price and a deadline .

As the options for the purchase price of the warrant is called a premium.

Depending on the underlying asset, there are two types of :

1. Warrants: their underlying shares only.

2. Covered warrants: they can have as underlying stocks, bonds, equity indices or baskets of securities or bonds, currencies or interest rates.

The value of a warrant is given by the same parameters that define the value of options: intrinsic value (in fact, are divided into ITM, ATM and OTM), time value and implied volatility.

For more insights and operational ideas, I refer you to " Covered Warrants & Trading "

Source: Article Marketing Italy

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4 Responses to "Make Money with Covered Warrants"

  1. But to do this job, you know the transactions and the stock market

  2. Luke No Gravatar (4 comments) on June 29th, 2011 at 23:03

    The forex and definitely a great way to earn automatic but never affiliations.

  3. great post!

  4. Mark No Gravatar (11 comments) on January 7th, 2012 at 17:07

    Thanks for the info, always valuable

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