Trading WarrantsWould appreciate any pointers to any BRIEF sources to learn the ins and outs of trading warrants, or your thoughts on trading warrants. That’s one type of investment I have never tried but I trade options/stocks routinely. Thanks for your attention.
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Most warrants don’t have enough volume that any trading system will make a lot of sense, and they often trade at irrational prices because they got popular during the SPAC mania, but they’re pretty simple instruments — you just have to remember that they aren’t standardized and they can be subject to early redemption in some situations (especially SPAC warrants), so you have to pay attention.
I went through some warrant scenarios in discussing recent warrant pitches from Nomi Prins and Dave Forrest at Casey over the past year or so, if you want some examples.