For those who like to short NCP

  1. 435 Posts.
    The put warrant NCPWMY seems to me to be to cheap.

    It is a $12 september put warrant with a conversion ratio of 5:1

    5 x 69 cents = $3.45 plus the current price of NCP at $8.55 gives $12.00 exactly.

    This makes no allowance for volatility.

    Therefore, rather than short NCP, you could buy 5 times as many NCPWMY, and thus limit your exposure to a rise in NCP whilst gaining the full benefit of a fall in NCP.

    Have I missed anything?

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