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Joseph Biondo, Jr

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  • Just One Stock: Warrants Offer Leveraged Opportunity to Tap JPM's Earnings Growth [View article]
    Dear Austin:

    The real beauty of these warrants is the amount of time they offer for our analysis to prove out. While I agree that there is better leverage in the shorter-dated options you mentioned, they do bear the additional risk of timing. The warrants are also already in-the-money, which implies less risk as well. I am confident that $6.50 normalized earnings will be achieved, but I am not certain what valuation market participants may attach to those earnings, so I prefer to take the timing risk out of the equation. Obviously, this means less return than the options you mentioned but for me and our strategy, the warrants just make more sense.
    Apr 21 03:40 PM | 1 Like Like |Link to Comment
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