Posted on 02/15/2024 7:18:03 AM PST by Eccl 10:2
Nice! So you can trade $11.50 for $50?
Why not if you are in the money? Tax reasons, maybe? Don’t want the cap gains now?
What’s the upside to not exercising them?
” any thoughts?”
I know I always like to pull my money off the table and still have chips in the pot. But that’s just me.
Good on you for having that decision to make.
Feel the adrenaline?
Better then a bass boat ...
The only upside is losing more upside I imagine
Is there no trading market for the warrants? Often warrants will have their own ticker symbol, unless these are all in paper certificate form. I don’t know the details of their merger arrangement.
There is a ticker - DWACW.
The DWACW price is about $20 right now.
I have never actually exercised a warrant, just bought and sold them - in this case there seems to be a big gap in the stock price and warrant price.
Yeah, that’s because there is a lot of volatility and a tiny bit more risk vs options, and probably less liquid market for them. You could pony up the $11.50 and redeem the warrant for stock, and then sell the stock and buy leap options if you want to buy potential upside from today’s price… or hold the stock and sell options for the income. Or some other variation on the theme. You could even theoretically sell options against your warrant but your brokerage may want full collateral.
Usual caveats I am not an investment advisor and give no specific investment advice just talking through hypotheticals as I see them. I have no stake in this and don’t plan to.
I was actually weighing those options - LEAPS are always pricey.
The DWACW (warrants) trade on average volume of about 620,000
Add me
Done! Thanks.
Good.
The stock has been so volatile. But by 2028 a lot will change, we’ll see how profitable the entity is, etc. It will stabilize at some point. What happens if Trump wins? Will he even be a factor in the company during his term? Would he even be allowed to post there “exclusively”?
Yeah leaps can be pricy but you’re sitting on about $38 in profit right now as of today.
So if your concern is leaving upside on the table, you can get the best of all worlds. Take some profits and keep a stake if there is upside. If it goes to $70 you still made some and also pocketed the premium.
Generally when I traded options, I bought in the money. Less Delta premium the deeper in the money, but without looking at this stock I suspect because it has been so volatile there is a premium on either side of the options. When premium is high, maybe better to look at opportunities sell the premium.
Good points.
I bought the warrants at $16, plus the $11.50 per share so I’m in at $27.50 - still a good profit.
you can’t do it until the merger is complete. Ask your cpa about selling warrants compared to exercising them for tax purposes; there is a difference I believe.
you add the 11.50 to the price you paid for the warrants and that’s your price. you pay 11.50 on top of what you paid. again, can’t do anything but sell warrants right now; can’t exercise til merger is complete
The warrants are for the spac, not the new merged company - not sure if I can or can’t exercise them yet.
In the SEC filing, it doesn’t say anything about a merger with another company, just a wait period after the DWAC IPO.
the warrants will become DJTW after the merger which should be complete in the next 30 days. there is no IPO; DWAC has been public for several years.
you can’t exercise until the merger is complete.
Thank you for that. I’ve never dealt with warrants in any way.
I was referring the original DWAC IPO in 2021
https://www.sec.gov/Archives/edgar/data/1849635/000110465921090302/tm2117087d2_s1a.htm
I’m not exactly sure what you’re reading but if you read in the latest effect filing about the ‘business combination’ that is what we’re all waiting for. DWAC combines with TMTG and then becomes the ticker DJT or DJTW.
The IPO that happened for DWAC several years ago is not pertinent.
I was reading their SEC filing from years ago - not sure about the filing of the merger part, you may be right.
Ah I see. I thought maybe the warrants came with some stock issuance. Didn’t know you had such a premium on them. anyway food for thought. I hope you make a bundle whichever way you play it.
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