I think what you are missing in my strategy is that I'm leveraging my capital already invested in RVX. At 3 warrants for 1 share I'm selling 10,000 shares for 30,000 warrants not 10,000 warrants and cash. In the money break even on that trade is about a $3 share price. If and when the share price goes north of $3.10 I will be ahead. Ex. Share price $3.05; 10,000 shares are worth $30,500 and 30,000 warrants are worth $30,000 net if exercised. Share price $4.05; 10,000 shares are worth $40,500 and 30,000 warrants are worth $60,000 net if exercised.  Warrant side of the trade is obviously an increasingly bigger winner as share price increases. 

Using warrants there are obviously a number of ways to adjust your position either for a more defensive or more aggressive strategy. Especially at 3:1 ratio, on defence one could take 2/3 of their money off the table trading one share for one warrant plus cash or at most aggressive trade all their shares for 3x the warrants. I'm in the middle, trading some of my shares for triple the warrants on the number of shares sold.