(Total Views: 391)
Posted On: 06/17/2025 3:54:11 PM
Post# of 154596
Quote from Sunray3
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Accordingly they will exercise and sell at price points which may seem irrational to us, and can be responsible for some of the shorting we see as well; warrant holders can and do "short against the warrant".
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I find this hard to believe in the case of CYDY for the following reasons.
1) warrant holders want the stock price to go up because it makes their warrants more valuable.
2) many older warrants that are approaching their 5 year expiration date are higher than 35 cents so it wouldn’t make sense to exercise them until the price rises above their exercise price.
3) why bother to short the stock and exercise the warrant when you can just exercise the warrant and sell the stock if you wanted to - the price has been in a very stable range for weeks.
4) Also warrant holder that exercise their warrants in a taxable account would prefer to wait for a year before selling shares so that they can get long term gains tax treatment
5) any warrants that have a long time left until expiry would likely be held for a few more years since the warrant holders would simply wait until the share are significantly above their exercise price share price since it is free to hold the options and the holders likely know a lot about the stock and would hope it has room to appreciate in the coming years.
I think your theory is very wrong in the CYDY case at this time and wonder if you have any proof that this is going on in a widespread fashion if at all.
All IMO
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Accordingly they will exercise and sell at price points which may seem irrational to us, and can be responsible for some of the shorting we see as well; warrant holders can and do "short against the warrant".
—————-
I find this hard to believe in the case of CYDY for the following reasons.
1) warrant holders want the stock price to go up because it makes their warrants more valuable.
2) many older warrants that are approaching their 5 year expiration date are higher than 35 cents so it wouldn’t make sense to exercise them until the price rises above their exercise price.
3) why bother to short the stock and exercise the warrant when you can just exercise the warrant and sell the stock if you wanted to - the price has been in a very stable range for weeks.
4) Also warrant holder that exercise their warrants in a taxable account would prefer to wait for a year before selling shares so that they can get long term gains tax treatment
5) any warrants that have a long time left until expiry would likely be held for a few more years since the warrant holders would simply wait until the share are significantly above their exercise price share price since it is free to hold the options and the holders likely know a lot about the stock and would hope it has room to appreciate in the coming years.
I think your theory is very wrong in the CYDY case at this time and wonder if you have any proof that this is going on in a widespread fashion if at all.
All IMO
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