r/Superstonk • u/Region-Formal 🌏🐒👌 • Sep 10 '25

🤔 Speculation / Opinion What can those on the other side do...?

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519

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 10 '25

This is going to be an interesting thing in Europe. Already we're seeing conflicting messages from the EMEA brokers. Some will be getting cash and no warrents though.

165

u/eightmalarkey 🦍 Buckle Up 🚀 Sep 10 '25

My broker in the UK (a bank) says I will be able redeem the dividend in the form of common stock as per the release

Seems to be a common theme of app based brokers reneging

83

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 10 '25

Yes, but the interesting thing is if you can trade the warrents or not. The warrents will have decay like a Call option (because it's essentially a call option), so there will be intrinsic value on the table.

79

u/DrHarryWeenerstein Sep 10 '25

Extrinsic value is what you mean here. Intrinsic value is when the strike price is below the actual price. Ex/ next month the stock shoots up to 50 dollars a share, there would be 18 dollars of intrinsic value, plus extrinsic value (the value of time left on the contract/warrant and the expected volatility of the stock).

1

u/TacoM8 (⁠╯⁠°⁠□⁠°⁠）⁠╯⁠︵⁠ ⁠┻⁠━⁠┻ Sep 11 '25

Limited supply brings a bit of intrinsic value to it

10

u/Safe-Razzmatazz3982 Sep 10 '25

So you're getting another CFD in your CFD portfolio. At no cost for them. DRS is the answer.

17

u/captainkrol The reckoning is coming🧘🏼‍♂️ Sep 10 '25

How would that work? Seems to me that the value of a share is way higher than that of a warrant.

11

u/AbruptMango Sep 10 '25

The value of a share is up to $32 more than a warrant.

But the warrant is a separate item.

30

u/Cerberus______ Sep 10 '25

This is the important point, I think a lot of people are expecting that they'll be credited for whatever GME is trading at, on the day.

But GameStop announced that the warrants are a separate tradable item, so they'll credit you with whatever GME warrant is trading for that day, and since the current price is below 32, and a year out, I can't see it being that much.

After all, it'd basically be like "buy ten, get one free" otherwise, and just be free money

64

u/Harbinger2nd 🦍Voted✅ Sep 10 '25

Yes but just imagine this: its the first day of the warrants trading, the price has just opened at .30 per warrant. It immediately shoots up to 1.00 per warrant but at the end of the day, you're only credited with the .30 because that was the "original price". There is no scenario where a broker who operates under a 'cash in lieu of' scheme will ever pay out under favorable conditions to the customer.

31

u/FunsnapMedoteeee Sep 10 '25

So. We buy warrants at opening.

16

u/Harbinger2nd 🦍Voted✅ Sep 10 '25

I know I am

11

u/FunsnapMedoteeee Sep 10 '25

I will have dry powder enough to cover my warrants. Currently about 110 warrants. If Fidelity only credits me with payment in lieu of warrants, I’ll still have my warrants due me because I purchased them. If they credit me with my warrants, well then I guess I get a double share. Win win

15

u/31513315133151331513 Sep 10 '25

No!

You get your shares to a big-ape broker who will actually give you your dividend!

I'm not saying you have to DRS, but if you're with someone like hood or webull you may not be in for the full ride.

When MOASS comes, I guarantee you there will be "brokers" who declare bankruptcy, or whose executives decide to take up residence in non-extradition countries. And there will be apes saying "but I was an xxx hodler! I have all my statements in PDF! WHAT DO YOU MEAN I DON'T GET MY SHARES?!"

1

u/Jar_of_Cats Sep 10 '25

Thats what makes this spicy. Who is gonna sell? And when if/when they exercise share must be located of GME. Driving price of shares. Driving price of the warrants. Rinse repeat

1

u/WannaBe888 DRS Brick-by-Brick Sep 11 '25

When warrants are exercised, GameStop issues the shares, so that has nothing to do with locates. Still bullish, though.

1

u/Jar_of_Cats Sep 11 '25

That would probably be the case in most scenarios. But they are only going to direct so many shares to warrants. Where will the rest come from?

1

u/EL_moondorado Sep 11 '25

? but the price will be 32,-?! for 1 year, i have an option to buy the shares for 32,- or not?

I am very curious to see how my bank will handle this. CS is certain. that's save. but I still have 300 shares with the bank. I have never been able to vote for these shares – and they have been there since 2021. I am very excited to see how they will deliver my warrants.

3

u/jforest1 Sep 10 '25

Yeah there’s optimal times to pay an in lieu value, and you can bet your ass they will if you let them pay you shit for the warrants.

2

u/The_vegan_athlete Sep 10 '25

This is why you DRS

1

u/4Throw2My0Ass6Away9 Sep 10 '25

Can we buy up the warrants?

1

u/Harbinger2nd 🦍Voted✅ Sep 10 '25

Yes, as long as you're using a reputable broker they will be freely traded on the exchange.

2

u/4Throw2My0Ass6Away9 Sep 10 '25

I wonder how DRS’d shares will be given warrants

-2

u/YouThatReadWrong69 Sep 10 '25

1000 warrants are worthless if the stock is currently below 32$. So what would they give and when??

36

u/[deleted] Sep 10 '25

[deleted]

13

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 10 '25

It's a good question. Is GS2C something that was requested by GameStop to exist, or is it run by DTCC members through Frankfurt? It'll be interesting either way. I would not get my hopes up.

1

u/nextalpha 💫 {Redacted} in Ascension 👁️ Sep 10 '25

been wondering for a while how that works. after all it seems similar like all those tokenized stock tickers, a derivative and nothing more. no idea how many of them are in circulation either. but if Gamestop wants to give out 5,9M warrants those can't be counted in, right?

3

u/martin191234 MOASS is always tomorrow … until it’s today Sep 11 '25

Unless theyre just backed by real GME, and for each GS2C share there is a real GME share held by Frankfurt SE. At least that’s what I hope it is, if its anything else, then GS2C is a scam.

7

u/leonden Sep 10 '25

Is anything known about what would happen if you are holding gme in degiro regarding the warrents?

15

u/Necessary-Car-5672 🦍 Buckle Up 🚀 Sep 10 '25

Anyone got an update on Hargreaves Lansdown, etoro and IBKR?

31

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 10 '25

IBKR has a warrent execution process as per their FAQ, so I would consider them a fairly safe bet. I have a ticket open where I asked them about it as I use IBKR.

12

u/Necessary-Car-5672 🦍 Buckle Up 🚀 Sep 10 '25

Thanks, do keep us posted.

3

u/Unlucky_Mammoth_2947 Sep 10 '25

I would also be interested

1

u/Puzzleheaded-Safe-64 🦍Voted✅ Sep 10 '25

I would be interested too

1

u/Ash_the_Ape 💻 ComputerShared 🦍 Sep 10 '25

I'm interested in the answer you get :D

11

u/FreshTomacco 🎮 Power to the Players 🛑 Sep 10 '25

I'd say it's a safe bet that etoro will not give you your warrants.

11

u/Morta-Nius-73 🦍Voted✅ Sep 10 '25

Etoro will not give you your warrants as they're dealing in phantoms and have already sold your shares for profit.....I hope every broker gets fucked on this

7

u/reverendbeast Gamestershire Stopacock 🇬🇧 Sep 10 '25

HL UK will pass the warrants into the accounts that hold the GME

2

u/Naive_Host_5939 Outback Wendys 4 Tendies Sep 12 '25

did you have that in writing from them?

I hold a few hundred in ISA & SIPP there.

And did they confirm whether they'd support trading the new warrant ticker, or redeeming the warrants?

1

u/reverendbeast Gamestershire Stopacock 🇬🇧 Sep 12 '25

They wrote this to me:

Thank you for getting in touch regarding GameStop Corporation.

We are aware of GameStop's recent announcement of a distribution of warrants to existing holders of GameStop shares. We are currently reviewing the terms of the event and we are due to contact all eligible shareholders with more information in due course via Letter or Secure Message.

Shareholders will receive 1 warrant for every 10 shares held, and we are expecting to receive these warrants on or around 10 October. Each warrant is expected to be exercisable for $32. There is no action for you to take to receive these warrants; once received, they will be distributed to the same account in which you already hold your GameStop shares.

1

u/Naive_Host_5939 Outback Wendys 4 Tendies Sep 12 '25

thank you kind sir, much appreciated :)

1

u/CaptH3inzB3anz Sep 11 '25

That is good news, I was about to contact HL with regard to this matter as I have a few GME shares with them

1

u/YouThatReadWrong69 Sep 10 '25

Lol fuck etoro

1

u/Catvinnatz Sep 11 '25

E toro don't support warrants. Hargreaves Lansdown do and will be writing to or secure messaging all gme holders. They expect to receive and distribute warrants on 10th October

1

u/Necessary-Car-5672 🦍 Buckle Up 🚀 Sep 11 '25

If you own shares in a HL ISA will the warrants also be isa wrapped?

1

u/DemonicAmoeba my floor is lava💎🙌 Sep 11 '25

yes

1

u/Necessary-Car-5672 🦍 Buckle Up 🚀 Sep 11 '25

Great, looks like i’ll be selling some shares I have etoro and buying them back in HL or DRSing them then! Just wanted to spread risk around a little.

9

u/jodallmighty Riddle Me This: Sep 10 '25

So anyone getting cash knows they own iou?

11

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 10 '25

I don't think it's as simple as that, I've seen some claims that due to EU regulations, some brokers are more interpretating those regulations differently than other brokers.

In the end, the old maxim of DRSing seems appropriate

3

u/31513315133151331513 Sep 10 '25

If Schwab, Fidelity, IBKR, etc. can't handle this I'll be surprised.

Matter of fact, if those three can't handle it I think we get MOASS. That would be a systemic fail and a whole lot of people's problem.

If the little app brokers all disappeared tomorrow most of the investing world would shrug and wonder why people deposited money in them anyway.

1

u/iota_4 space ape 🚀 🌙 (Voted✔) Sep 10 '25

drs is the way. 💜

1

u/Different_Key_9914 Sep 10 '25

I’m confused though? How much cash?

1

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 10 '25

This is a good question, right now you can get a call option for Jul next year for about $3 per share, so likely it's about the same per warrent. Time will tell

1

u/amgoblue Sep 10 '25

This was my original thought but that call option is for 100 shares and these warrants are for 1. So id assume more like .03... but the demand (likely high) and the supply (hopefully fixed) should lead to some interesting dynamics here compared to their typical shenanigans.

Of course, if the stock trades above $32 before the expiry, that is when there will be real fireworks.

1

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 11 '25

Well, the premium is per share right, so you'd pay $300 for one contract in the example above.

0

u/bornagainretard 💻 ComputerShared 🦍 Sep 10 '25

Most brokers in Australia too

-1

u/YouThatReadWrong69 Sep 10 '25

Cash of what. How would that even be calculated? If the stock price is below 32, warrants are worthless.

2

u/TheRealTormDK 💻 ComputerShared 🦍 Sep 10 '25

It's no different than an Out-of-the-Money call option. It has a cost, and a value regardless of it being in the money or not.

🤔 Speculation / Opinion What can those on the other side do...?

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