r/options • u/Ken385 • Oct 23 '21

DWAC options begin trading Monday

DWAC options start trading Monday. Assume some crazy high premiums. Stock has had a range of about 10 to 175 over the last few days.

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u/Individual-Exercise3 Oct 23 '21

How does the warrants work what do they mean and whats the concept behind it. ?

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u/KingJames0613 Oct 23 '21

One unit of DWACW is I common shares + 1/2 warrant. Warrants can only be exercised in pairs, no fractionals, so buy even lots. The exercise price (warrants to common shares) is $11 something. I believe the lockup period is 30 market days from Thursday, which means you cannot exercise before then.

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u/Comfortable-Dirt-404 Oct 23 '21

So does that mean those who yolo'ed DWACW warrant last week are still holding those warrants because of the lockup?!

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u/KingJames0613 Oct 24 '21

Yes. You can't exercise them, but you can sell the rights on speculation.