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Over Time This Trade Makes the Most Money Hands Down

Stock Warrants Snorkel Trade

You know how you think something is one way and it turns out it’s completely different? I’ve been re-reading Thinking, Fast and Slow. How easily people “believe” something when they have very little information fascinates me. Before I went to Wall Street, to learn trading and warrant arbitrage, I thought market makers were probably aloof […]

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Trading BofA Calls Against BofA Class A Warrants

Continuing my percentage hedge in Bank of America common and warrants, this morning I re-shorted the 450 shares of common I covered yesterday. This trade was executed at $16.51. So I’m back to long 5,000 BACWSA and short 1,750 BAC common stock. I’ve also shorted 10 of the March 14, $16.50 call contracts at $.22. […]

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Covering Some BAC in the Percentage Hedge

I’ve covered a portion of my BAC short from Friday. I’ve bought back 450 shares at 16.27. You can read the original post that began this trade here. Sharp moves like we see this morning are usually great opportunities to adjust a percentage hedge to either make a profit, or place the hedge in a […]

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