Warrants are $2.25 at today's price. So if you buy, say 1000, that's $2250 for the right to buy 1000 K at $22.49 by September, 2011.

Break-even is $24.74, so K at $30 is a profit of $5260 for a maximum risk of $2250. K at $40 is a profit of $15,260. And if the trade goes against you, you can probably sell the warrants without exercising them.

Hmmmm ...

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K.wt.b looks like a good buy though, shorter expirey but I think it's safe. If it doesn't pop before Sept 2011, it's probably not going to ever.