Stephen McBride here.
Please join me in giving a warm welcome to John Pangere, RiskHedge’s newest analyst and expert on a little-known corner of the market called warrants.
Several of my friends and colleagues have made millions on warrants.
But I’d never bought one myself.
So I had John show me how to buy a warrant on video.
He shared his screen and walked me through buying a 55 cent warrant in a normal brokerage account.
From there, I picked John’s brain. I asked how he zeroes in on profitable warrants, how he filters out weak ones, and how investors should think about risk when trading something most people have never touched.
Your fellow RiskHedge readers have sent in some great questions about warrants. I had my team put together a Q&A answering common ones—see below.
Q 1) Why is the video titled, “There’s a Warrant for That”?
Because once you start looking, you realize how many warrants are out there.
There are roughly 400 tradeable warrants listed in US markets. More important, they cover a wide range of industries.
You’ll find warrants on AI-related companies, commodity producers, space and defense names, biotech firms, quantum computing, and plenty of other areas investors follow.
Q 2) Can I take advantage of warrants?
Yes, all you need is a brokerage account. You don’t need to be an accredited investor. You don’t need to fill out any complicated paperwork.
During the demo, you’ll see just how familiar the process is. It’s just like buying a stock.
Find the stock you like, and if it has a warrant, you’ll typically find it in the dropdown with an extra “W” in the ticker.
For example, quantum stock Rigetti Computing’s (RGTI) warrant ticker is RGTIW.
Q 3) Why do warrants often respond strongly when a stock moves?
They offer leverage to the underlying stock. Meaning, when the stocks move an inch, the warrant can move a mile.
We showed you this at work with Purple Innovation (PRPL). The stock did great, rising 431% in less than two years.
But the warrant, which John recommended, amplified that move. The Purple warrants soared 4,947% during the same timeframe.
Source: Strategic Trader
The starting price of those PRPLW warrants was only 19 cents.
But you need to be selective with warrants. Many warrants aren’t worth touching. That’s where process matters. John has a very strict process, which he gets into in the video.
Q 4) What do investors misunderstand most about warrants?
They assume you need to put a lot of money at risk to make them worthwhile.
In reality, warrants allow for smaller position sizes while still giving you meaningful exposure. Many warrants trade for just a couple of dollars or less. In fact, four of John’s top “buy now” warrant recommendations are under $1.50.
Q 5) Is this something only short-term traders can use?
No.
Some warrant trades play out over weeks. Others take months. The focus is on finding a good setup, understanding what you own, and letting the trade develop.
Patience is key.
Q 6) How does John think about managing risk in warrant trades?
One thing he stresses is always using limit orders.
He’s also strict about respecting the buy-up-to price on a trade. If the warrant moves past that level, don’t “chase” it.
Warrants reward investors who respect those rules.
Q 7) Who should watch the replay?
Anyone who’s curious about a different way to make money without touching stocks.