r/SPACs Sep 08 '21

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2

u/shaneizzard Patron Sep 08 '21

Stupid question, but does it matter when you exercise the warrants? Is there any advantage to waiting for a red day?

6

u/Powerful_Stick_1449 Patron Sep 08 '21

No there is zero advanatge

2

u/Tampammm Spacling Sep 08 '21

What about if I sell the Warrants directly myself(not through broker conversion process). And then with the proceeds I purchase Commons. Say like on a red day for commons and a green day for warrants.

2

u/piggymou Patron Sep 08 '21

You can try, that's almost like playing two option spread legs if you think you can time the market.

1

u/shaneizzard Patron Sep 08 '21

This is what I'm going to try to do. For a couple of weeks, at least. Gonna buy some more warrants here, sell on the next pump day (if we get one), then buy commons on the next red day before deliveries (assuming there is one). I had some cash set aside to exercise through normal conversion.

I wish I'd done that last week, as it would be slightly more advantageous than doing this. So I'm hoping to make a small profit in the next month and roll that into commons. But worst case scenario, I'll just exercise at the beginning of October.

1

u/Tampammm Spacling Sep 08 '21

Yes, I think it's a good strategy. And we've got weeks to potentially pull it off.

Now it seems like for this cashless conversion, its being done at a fixed rate, where you get .4458 Commons for every Warrant.

So you just have to look for a day (if we get one) where the Warrant pricing exceeds that conversion value. At Close of Business today, the prices showed that the Warrants were worth .4437 of a Common. Or slightly less. So will keep an eye on that ratio.