This paper attempts to analyze overreactions with price revearsal in the Taiwan warrants market. To separate the effects of the underlyings, we develop excess returns of warrants by simple hedged portfolios. Then winner-loser hypothesis and variance ratio test are used to analyze overreactions. Our empirical results suggest that there does not exist overreaction in the warrant market. We also study the robustness of the result by considering different characteristics of warrants, including the industries and riskiness of the underlyings, the extent of in-the-moneyness, and whether or not warrrants are issued during the financial crises. Our results suggest that investors could not make any profit form excess changes of warrant prices related to the underlying asset prices.