The Warrant Report
LEAPS: Table Updated
Dudley Pierce Baker
www.JuniorMiningResources.comThis week we updated our LEAPS Table which we make available for our paid subscribers to www.PreciousMetalsWarrants.com and www.TheGreedyGuru.com.
If you are asking, ‘what the heck is A LEAP?’ hang on for a minute and we will explain.
It would take many hours for investors to research all of the LEAPS which are available for the resource shares and listed on the Chicago Board Option Exchange, www.CBOE.com. Frankly, more like, how many days?
We have done the work for our subscribers as we list ALL of the resource companies with LEAPS and we have a hyperlink for you to Yahoo Finance to the longest term LEAPS-Option available.
Normally there are not many changes in the LEAPS available and thus it is only necessary to update our table on a quarterly or semi-annually basis.
Recently the CBOE has extended the life and availability on many of the LEAPS and the longest life is now 16 January 2015.
You might ask; “why are we excited at the new extension of the LEAPS life at this particular time?”
I am not a lone ranger as many of the ‘big-boys’ are also extremely bullish, i.e., Rick Rule, Pam Aden, Steve Saville, Doug Casey and the list goes on…. Yes, we have been early but investors should be invested or accumulating the resource shares at this time and be patient, our time is coming.
Another way of investing in the resource sector instead of buying gold, silver and/or shares on the resource companies would be to consider buying, long-term warrants or LEAPS.
LEAPS give the holder the right, but not the obligation, to purchase the underlying security at a specific price and expiring on a specific date in the future. This is the same definition of a call option, however, a call, has a shorter life.
As we are not traders, we do not advocate the purchase of short term options, but we do smell opportunity for the longest term LEAPS and long-term warrants at this particular time.
In our service, www.PreciousMetalsWarrants.com we are “The Authority on Warrants” and are the only service to our knowledge providing a comprehensive database of all of the warrants trading on the resource shares.
Warrants are not new. Warrants actually go back into the 1920’s and at one time even AT&T had a warrant trading.
One big difference with warrants as contrasted to LEAPS or Options is that warrants trade like a stock. They are assigned a symbol and will trade on Toronto Stock Exchange or the Toronto Venture Exchange and most are assigned a symbol for trading in the U.S. OTC market.
Also, TIME is a major difference with warrants.
Warrants have been issued with expiration dates of up to 5 years giving resource investors an incredible opportunity to participate in the long-term bull market in the resource sector and the time to weather the stormiest down turns before the peak is reached in the next few years.
LEAPS and Options, just don’t give us the same ‘long life’ potential as warrants, even though with the latest LEAPS now available on many of the resource companies in our New LEAPS Table (see above) with an expiration date of 16 January 2015 does give investors more to think about.
As well, more of the larger resource companies have LEAPS available rather than warrants, even though there are many great companies with warrants available in our warrant database.
EDUCATION – INVESTMENT IDEAS – PERFORMANCE
Dudley Pierce Baker
Founder and Editor