About

 

img033

Hi, I’m Steven (stevenadams@stockwarrantshq.com) and I run the site here at stockwarrantshq.com. That’s me with my glider in the picture above (just kidding, that’s me and the glider I flew in New Hampshire, but it’s not mine.)

I’ve been trading warrants for many years, and have a deep understanding of warrants and how they trade relative to common stock. I’ve put this site together to educate anyone interested in warrants, and to help those who have an interest in trading warrants.

Warrants are a lot like call options, but they also have some very important differences that can be used to make money. Warrant arbitrage, in particular, is for those seeking a low risk, high value return on their capital.

Stockwarrantshq.com is designed to describe what warrants are, the various tactics used to invest in or trade warrants, and provide insight into a few select currently active stock warrants.

If you have no idea what a warrant is, don’t worry. I’ll tell you, as well as give you some invaluable tips and tricks to trade warrants.

You can make good money trading warrants, but it requires that you know the ins and outs of warrants, and that you have a sense of how warrants behave at different times and during varying situations over the life of the warrant. I can help you with that.

If you ever have a question about anything on the site, or I can help in any way, just drop me an email at stevenadams@stockwarrantshq.com, or feel free to comment on any page. Best of luck in your warrant trading!

Steven

So, that’s the “corporate” intro. If you’re happy dealing with a corporate face then don’t read any further.

But, if you want the skinny on me (the real “About”), then grab you’re favorite Scotch and pull up a chair. (mines Glenmorangie 18…or, if you’re reading this in the summer and want something cool and refreshing, grab a G&T, my favorite is Hendricks, and no, I’m not quite sophisticated enough to pair it with a unique tonic. Though I understand that’s all the rage. Scwheppes suits me just fine. Oh, and I like talking in parentheses.)

The Wonder Years

Let’s begin by humming the theme to the Beverly Hillbillies, “come listen to a story ’bout a man named Jed.”

I was born in the foothills of North Carolina, in what was then the moonshine capital of the U.S. (Aside, I recently tried some moonshine from a distillery in Pennsylvania, here is their Facebook page, https://www.facebook.com/pages/Old-Republic-Distillery/441018572632700, I highly recommend the Blueberry Apple Pie Moonshine, awesome stuff.)

Normal childhood. Lot’s of playing outside and in the pine needle strewn woods around my house. And always with my boxer, Prince, who loved to run in our yard.

I still have a boxer now (no, not the same one I grew up with), Lola. This is her enjoying a peanut butter treat.

Lola

Lola

Also, from an early age, though I had no idea what drove me at the time, I had a sense of business. Or making fat stacks as Jesse would say (gratuitous Breaking Bad reference).

In kindergarten I was a likable guy, so other kids would want to lay their plastic mats down near me at nap time. I thought this was great.

And since there were more kids that wanted to nap near me than floor space I came up with a simple solution. $1 bought you a spot near me with your trifold plastic mat! This worked great until my Mom found out and made me give the money back.

Skip to 4th grade. I had bought Hot Tamales candy (like Mike and Ikes if you don’t know them) and was eating them on the bus. Other kids on the bus wanted to sample some of the spicy candy, so…

I sold each piece for a quarter. This was when one box was $.50 and had about 12 or so pieces of candy in it. Ahh, the corporate raider I could have been.

Unfortunately, I didn’t grow up with Donald Trump as my Dad, so all of my young business instinct was never nurtured. No one in my family (while I have only one sister, my extended family was very large) had ever actually gone to college.

Mom / Dad Send Money

So, when it came time to apply for colleges in high school, I only applied to one college and was accepted. Fortunately, growing up in N.C. and being a fan of the Tarheels (Go Heels!), that one college was the University of North Carolina at Chapel Hill.

It was at Chapel Hill that I finally put my foot on the green path of business. It began with choosing the correct major…Political Science.

OK, so I hadn’t quite found that business path yet. As my roommate’s dad said when I told him what I was majoring in, “That and $5 will get you a $5 coffee at Starbuck’s.” (Well, I enhanced that last line for those of you not on the downside of 40 yet, since Starbuck’s hadn’t even gone public at that point. He actually said, “That and $.25 will get you a $.25 cup of coffee.” How the hell does Starbuck’s charge those prices and sell so much coffee?!?! Back in a few minutes, off to grab a frappuccino…damn them and their frosty cups of heaven.)

Back to our story arc. Four years at Chapel Hill was great. And, not having grown up in a blue collar household, it was also to be the last of my education. The thought of post graduate education never even crossed my mind.

Where the Jobs Are

After graduating with my Poli. Sci. degree, and not finding much employment opportunity in small town N.C., I did what anyone would do. I left. And, since I had that Poli. Sci. degree I headed to the the most logical / nearest political place…Washington, DC.

I spent a few weeks on a friend’s couch at the University of Maryland, and then landed a job in business development / membership services with a nonprofit in Georgetown. The most important detail of this stop on the train of life, was that I met my wife there.

And, not within eyesight, but the second most important thing about working at this particular nonprofit was that everyone’s husbands (almost all of the employees were female) were lawyers.

Everybody Loves Wall Street, Right?…crickets

As is anyone in DC, just ask them. Being exposed to all those lawyers, and learning that a low level nonprofit employee makes a negative salary, got me thinking about law school. Next thing I knew, I was knee deep in law books, but it still wasn’t quite scratching that business itch I had, until I took my first securities law class…Eureka!

After taking all of the securities law / business classes my law school had to offer I had a good sense of securities law, but not actually how the securities markets themselves worked. A good friend of mine in law school worked for the National Association of Securities Dealers (NASD, now FINRA) so I took a job as a securities regulator. What better way to learn about the equity markets than as a regulator who could see EVERYTHING in the markets, right?

WAY wrong.

Regulators know regulations.  But, I found that few of the people I was working with had actually worked in the markets in any way, and therefore knew very little about any strategies that an investor or trader might validly use. (Don’t get me wrong, the people I worked with were GREAT people, but they were not the droids I was seeking.)

With the help of a colleague who had recently left Market Regulation to work in compliance, I was able to land a job as a trader on the NASDAQ market making desk at Fidelity.

Here was where my trading career would actually begin (also why you’re here at stockwarrantshq reading this riveting tale). And, it was also the place where I would meet the guy who would eventually teach me warrant trading.

It took me about 6 months just to learn the language of trading, much less the strategies and how to really make money. For example, if you call up a trader to sell stock, you’d say “10,000 BAC at $16,” giving the number of shares first and then the price. If you want to buy stock it’s “$16 for 10,000 BAC.”

While it sounds simple enough, try to keep it straight the first day on the job with 100 people yelling all around you, the guy buying (or selling) on the phone yelling at you because you’re saying, “how much” or “what did you say”, and with AMZN rising 200 points pre-open and then another 300 points (with your desk short 2 million shares) by 10am. (Yeah, I learned to trade on a market making desk during the dot com bubble. Man do I miss those days!)

The head of the desk, who had also founded the trading operations before they had been purchased by Fidelity, Les Seff, decided to leave and start his own proprietary hedge fund. Les was a VERY good trader and his specialty was (use your best Bond voice) arbitrage, warrant arbitrage.

Footloose and Fancy Free (or Kevin Bacon and Reba McEntire)

Les had hired me onto the trading desk, and I felt that the best way to learn trading, and especially warrant arbitrage, was to sit on a small desk with a guy who had been doing it for 30 years. So, off I went to Tech-Trade to apprentice myself to a master. (Yes, I do regularly attend the Renaissance Festival here in Maryland. My kids love it, and the bagpipe bands are killer. I mean, come on.)

Times were good. There were lots of warrant arbitrage opportunities. It was like having one of those chocolate fountains with silky smooth Dove chocolate cascading down the sides right in your house! I made $50,000 in two days on (Boo and Yah) one warrant expiration. Boo and Yah. I was hooked.

But then, life marched on. The dot com bust put a lot of warrants under water. And then 9/11 happened putting the rest of the deals to bed. At this point I had moved from our offices on Wall Street, with windows looking out on the World Trade Center, to trade from a home office just outside of DC.

The day of the attacks I was on an open line to our Wall Street office, and watching the Pentagon on fire on the news here. Hellish day. I’m constantly thankful that my wife and I had already moved, since while we were in New York she worked for NASDAQ and often grabbed breakfast in the bottom of the WTC.

Moving on…the bottom line result for me was that I left the hedge fund, which soon thereafter was dissolved, and went into business consulting.

That time isn’t quite as relevant to why you’re here, but suffice it to say I helped the NYSE set up a new market regulation framework as they moved to a hybrid market structure (part man / part machine). I helped NASA bring down the cost of doing unmanned missions (as in anything not related to the space shuttle). And, I helped Wachovia build a suitable brokerage platform after they gobbled up the Prudential brokerage operations. I was very helpful.

Stockwarrantshq.com is Born

That brings us to today. And if you’re still reading this, I’m gonna bet you’re saying “thank God.”

Today I run stockwarrantshq.com. I trade warrants, options, and equities, and coach others in doing the same. I assistant coach my daughter’s soccer team (they were league champions and undefeated last season). I watch my son play tennis and lacrosse, and every once in a while get close to beating him at tennis.

You won’t get any hard sells from me here – just my own take on warrant trading based on my own experience.

I provide a ton of information on warrant trading on the site, start with this guide, and even more in-depth info in my eBook. And I also have an annual subscription service, updated monthly, that will provide you with a list of warrants trading on the NYSE and NASDAQ markets. If you’re going to trade warrants get the list, or make one of your own, but either way have a list to identify opportunities.

Thank you for taking the time to read this, and I hope to see you on the site, or shoot me an email when you have a chance, with any questions / comments! Or just drop a comment / question below.

Cheers,

Steven

Disclaimer