| Warrants We Want Not many companies issue warrants. They're usually smaller-cap stocks that want to further incentivize investors to invest in their companies by offering a "kicker." And a warrant is effectively a call option on the stock itself. Here's the thing that has us interested... If the option is in the money, or even almost in the money, it's not worth holding. We can just own the stock. Now, a warrant can be helpful when the strike price is "out of the money." That means the price of the common stock is still well below the strike price for the warrant. Let's illustrate the setup with a stock that trades warrants, The Metals Company (TMC)... This is a $1 billion company that mines for minerals on the ocean floor. This is a big base defined by the green arc. And we're looking for a breakout above former resistance, defined by those red arrows. I was hanging out this week with my friend Matt Warder, my go-to guy for all things natural resources. He's a fundamentalist. Yeah, I said it. I do have friends who are fundamental experts in certain segments of the market. They're good friends. And they're really, really smart friends. I know I can turn to them whenever I have questions about things I know little about. Deep sea mineral mining is one of those things, lol. What the heck do I know about this stuff? I know about baseball, wine, and supply and demand behavior in financial markets. After that I got nothing. I'm the dummy at the Home Depot (HD) lost in the aisles looking for the guy in orange. I don't even know how to open the hood of the car, which is probably for the best. I know what I know. And I know what I don't know. So it's great to be surrounded by experts in many fields who will always take my call. Matt Warder, the "King of Coal" and the man of all thing's natural resources, is one of those guys. He tells me The Metals Company uses some kind of vacuum mechanism to scrape the ocean floor for minerals. Its tools are particularly above these ancient underwater volcanoes. That's pretty cool. And we can trade TMC warrants. You can find them through your brokerage account. They trade just like stocks. Depending on your system, a warrant will usually have a "W" or a "WT" or a "WS" designation attached to the ticker symbol. The warrant for The Mining Company (TMC) trades under the symbol TMC.WT. The warrant for Archer Aviation (ACHR) is ACHR.WT. So, yes, a warrant is just another ticker symbol we can trade. And, when it makes sense from a risk-vs-reward perspective, we'll look to go long, perhaps ACHR. This one could happen soon. When the setup is right - such as ACHR's potential move - it's a secret worth sharing. Stay sharp, JC Parets, CMT
Founder, TrendLabs | 
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