Dave Forest’s Warrants Master Course

BY DAVE FOREST, EDITOR, STRATEGIC TRADER

Dave Forest’s Warrants Master Course

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WARRANTS MASTER COURSEStrategic Trader

TABLE OF CONTENTSIntroduction to the Warrants Master Course . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Module #1: Warrants 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Module #2: Finding Warrants in Your Online Broker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Module #3: How to Buy and Sell Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Module #4: The Best Warrant to Buy Right Now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

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INTRODUCTION TO THE WARRANTS MASTER COURSEWelcome to Dave Forest’s Warrants Master Course.

In this Master Course, you’ll see what warrants are… how they’re unique and powerful profit tools…and – most importantly – how to buy and sell them with your existing brokerage account.

First thing, why warrants?

Simple: Because warrants are truly a tool for transformative wealth. Time and time again, we’ve seen gains like:

• 161% gain in 4 days

• 2,117% in 6 months

• 2,233% in three months

• 393% in 10 months

• 2,805% in less than two years

• 4,942% in 20 months... that’s a 40-bagger.

Most mom-and-pop investors will never get a chance to see these types of gains… or invest in this tiny, but extremely lucrative portion of the market.

Because the big money wants to keep it for themselves.

But Dave is going to unlock this area for you.

The types of gains mentioned above in such a short time period are almost unheard of… unless you’re in a risky part of the market like cryptos or options.

But warrants aren’t either of those things. And although they are speculations… which are positions we recommend putting small money to work in… they’re still by far one of the best and safest risk/reward setups in the market.

And why the small money? Well it’s because in this exclusive, mostly unknown area of private investments, small money is all you need to make life changing gains.

Buckle up, get comfortable, grab a pen and paper, and let’s work through these lessons, starting with Warrants 101.

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MODULE #1: WARRANTS 101Welcome to Warrants 101.

If you’re here, you already know about the explosive power of warrants, and want to make these life changing gains for yourself.

In this lesson, we’re going to cover:

• What warrants actually are

• How and why they’re created

• And how they can shoot up hundreds or thousands of percent, while the underlying stock doesn’t move as much.

Let’s get started.

I like to think of warrants as a sort of penny stock play on a bigger company. And penny stocks are often great, explosive speculations.

See, publicly traded companies have their stock…

But sometimes, they run on hard times… or need to raise capital quickly… or go public by merging with a Special Purpose Acquisition Company, or SPAC for short.

And then, a company issues warrants… which can sweeten the deal when this happens.

Often, these warrants are offloaded by private investors to take some of their initial risk off the table.

But they are valuable…

Because warrants give the holder the right to buy a share of a company at a specified price during a specified time frame, often for less than the current price of the stock.

So… here’s a real example. If you have a warrant that says you can buy shares of Zions Bancorp for $36.27 apiece at anytime during the next 10 years… and Zions trades at $52 apiece 8 years later… then you can “exercise” your warrants… which means pay the price to convert them to normal, conventional shares… and then you can sell the shares back to the market, and make money.

But that takes a long time, and it makes profiting off warrants far more complicated than necessary.

But that’s where our gain lies… because most people have no idea of the simplest way to make money from warrants, which we’re cracking wide open for you in Strategic Trader.

Here’s the big secret… feel free to write it down.

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We’re simply going to buy and sell warrants, just like any normal stock. And we’ll have the chance to make higher gains… with less capital at stake… and less risk.

Take Zions Bancorp (ZION) mentioned above.

When the 2008 financial panic happened, the company issued warrants because it needed to raise money quickly.

Then they hit the market.

And while ZION stock went up 60%, the warrants went up 3,000% more than the company’s normal, everyday stock.

And you may think there’s some crazy way you have to buy them, but I promise, you can do this just as easily as buying any stock in your online brokerage account, but we’ll get to that in Lesson 3.

In short… we don’t want you to worry about exercising warrants or doing anything unnecessary and overly complicated.

We’re going to make huge gains just by trading the warrants on the open market.

And lots of these warrants have a long time until their “expiration date.” This means the company has a long time to hit potential profitable catalysts which will cause the prices of their shares to go up…

But will cause their warrants to absolutely skyrocket.

I can’t wait for you all to find out how easy it is to get into this life changing niche of the market.

In the next lesson, I’ll show you how to find these warrants in your online broker… We’ll just “spot the W”….

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MODULE #2: FINDING WARRANTS IN YOUR ONLINE BROKERGenerally, the easiest way to find a company’s warrant, is to simply type the company’s name into your online broker’s search bar.

Of course, different brokerages will offer a different experience… some may be more user-friendly, or some will charge a fee to buy warrants (like TD Ameritrade) whereas some won’t (like Charles Schwab). Also, we have found that certain discount brokerages like Robinhood do not offer these securities… but that’s because they’re in bed with big corporations, and keep the best deals for themselves.

In any case, it’s easy enough to open a brokerage account on a platform that supports warrants.

Just keep in mind we don’t have a vested interest or receive any kickback based upon which broker you use… we just want to give you the facts.

And warrants show up differently across exchanges…

When a warrant is listed on an exchange, its ticker symbol will often be the symbol of the company’s common stock ticker with a W or a .WS added at the end.

For example, Vivint Smart Home, symbol VVNT, has warrants listed on the Nasdaq under the symbol VVNT.WS.

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And on the Charles Schwab mobile app, the Vivint warrants stick pretty closely to that formula… with a “back slash” WS instead of a “dot” WS:

However, on the TD Ameritrade mobile app, the Vivint warrants are listed with a “plus” sign, like this:

Now, some warrants will use a conventional-looking symbol – no backslashes, or periods, or plus signs.

For example, Hostess has a ticker symbol of TWNK. Its warrant symbol is TWNKW. Here is a screenshot from TD Ameritrade on the mobile app.

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But again, one of the easiest things to do is just type in the symbol for the underlying stock, and the warrant should pop right up.

And you’ll notice that each of the example warrants have “exp” with a date next to it… that’s an “expiration date” which all warrants have.

When we recommend warrants, we’ll always give you the expiration date, ticker symbol, and a buy up to price… however…

Oftentimes brokers do NOT have the most up-to-date research and information on their websites. For example, they may have the expiration date listed incorrectly.

But you pay us for our research. Our team uses a Bloomberg terminal, the most expensive and elite research tool out there. We scour the company filings and SEC records.

You can be confident that we provide you with the correct information.

But if the expiration date on your broker doesn’t match our recommendation, don’t worry about it. If you type in the company’s name, and find the associated warrant as we’ve shown above, you will be buying into the correct play.

Then after you’ve located the warrant you want to trade, just click on the warrant to buy it (or sell it) just as you would for any conventional stock.

We’ll cover this in depth in our next lesson.

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MODULE #3: HOW TO BUY AND SELL WARRANTSThere’s something I want us to get out of the way, first and foremost… and that’s the concept of “exercising warrants.” I’m sure several of you have questions about exercising warrants… but I want to tell you right now, that the best way to make money from warrants is not exercising them. So we won’t be doing that in Strategic Trader.

Why? Because it’s confusing, and often not as lucrative as the method we use.

At Strategic Trader, we will be buying warrants… basically like penny stocks… at a low price. And we’ll sell them when they rocket up on a catalyst before the expiration dates.

It’s worth repeating: we’ll be treating warrants just like any explosive stock. Buying low… and selling for massive gains.

No confusing process for exercising warrants, and you don’t have to worry about the expiration dates. We’ll sell our position before then.

Okay. I’m glad we got that out of the way.

So now that you’ve found the warrant in your online brokerage account using the steps in lesson two, it’s time to buy your position.

But first, you must decide how much to invest… and it’ll be different for everyone.

It’s very important that you control your risk in any of our warrants by position sizing appropriately. That means, only bet a small amount. Only speculate with money you can afford to lose.

After you’ve decided how much to invest, go into your brokerage account…

• Find the warrant,

• Click the “buy” or “trade” button,

• Specify how many warrants you want to buy,

• Make sure you adhere to our buy-up-to guidance,

• And be sure to use a limit order. Do NOT enter “market price.”

For those of you who don’t know, a limit order is a type of order to purchase or sell a security (in this case, warrants) at a specified price or better. For buy limit orders, the order will be executed only at the limit price or a better (lower) one. In short, a limit order allows you to get the best price on these warrants.

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For example, if our buy-up-to guidance is $5… and a warrant is currently trading at $3.50, put your limit order near $3.50. This way, you’ll get that price or better. And if our buy-up-to price is $5, and the warrant is trading at $5.10… then $5 is the price point for your limit order. Patience is how we make money.

And make sure you use the time in force, “good til canceled” option, rather than just a “day” order.

Let’s go through a few examples.

Here’s the Purple Innovation warrants in my TD Ameritrade account.

To buy the warrant, first confirm we’re looking at the company’s warrant…

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Then click the “buy” button…

Then we’ll enter the number of warrants we want to buy… in this example, 50…

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Then, from the “order type” drop down list, we’ll choose “limit.”

And we’ll enter the limit price, in this example, let’s assume our buy-up-to guidance was $8.65. So, I chose the market “asking price.”

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Then, from the time-in-force drop down list, I chose “GTC” which means, “good til canceled.” That means if my order isn’t filled today… I can be patient and wait for the price to come to me, without reentering a new order every day.

Then, click “review order”… and then, “place order”.

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That’s it! When your order is filled, the warrants will show up in your account.

I’ll also walk you through this same example in my Charles Schwab account, since it looks a little different.

Find the warrant… confirm it’s what you want to trade…

Then, choose “buy”… enter the quantity… order type… limit price… and select the “Good until canceled” option.

Then, you’ll review, and place your order. Different brokerages may have slightly different interfaces… but I hope after this lesson, you’ll have all the tools you’ll need to figure it out.

And now, you should be able to buy and sell any warrant we recommend in Strategic Trader.

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MODULE #4: THE BEST WARRANT TO BUY RIGHT NOWThe best warrant to buy right now is any warrant that is below its buy-up-to price in our Strategic Trader portfolio. Always check out the portfolio tab on the home page for the latest guidance on our picks.

Why any warrant that is within buying range? Because before we put together our recommendation… we spend hours and hours researching it. Then we run the warrants through our proprietary system which has led us to multiple triple-and quadruple-digit winners, including an astonishing 2,805% and a 4,942% gain on our picks.

It helps us determine the safest warrants with the most upside potential. We call it our “T-U-V” system. It stands for Time Value, Underlying Stock Potential, and Volume.

Before we consider any warrant trade, we need to make sure all three criteria are met.

Let’s break it down:

T – Time value: Time is money. And we want to get a free ride on the cheap. Our “sweet spot” is warrants that expire in three to five years, because we want to give them room to run. Getting in at the right time is imperative. The difference between two months could cost us thousands.

U – Underlying stock potential: We need to see that the underlying stock is strong and has big upside ahead. We don’t buy any warrants on a stock that we wouldn’t consider buying on its own.

V – Volume: We eliminate even the best warrants if they don’t trade. Some don’t have enough outstanding, and others are locked up in a few hands. We discard those, even if they’re valuable.

With our system, we’re able to pinpoint the very best warrants to own. For best results, we recommend placing an equal amount of capital into each warrants pick – say, $500 per recommendation – and always using a limit order.

I hope now you see just how lucrative buying warrants can be… and why they’ll be a big part of what we do here at Strategic Trader.

That concludes Dave Forest’s Five-Video Warrants Master Course. We hope you learned about the explosive money-making power of warrants, and are excited to deploy them in your own investing.

If you have any further questions, make sure you check out our FAQs, found under the special reports tab. If you can’t find the answer there, feel free to drop us a line at [email protected]. We respond to questions in our reader mailbag each month.

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Keep walking the path,

Dave Forest Editor, Strategic Trader

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Dave Forest’s Warrants Master Course