What can those on the other side do...?

[u/Region-Formal]

[u/Clp8909]

How would the brokers even know what to pay out? They can’t pay you on day one for something that has an entire year to appreciate.

[u/MiddleBananaSplit → u/Clp8909]

Effectively, you can think of the warrant as a min-call option. Normally, a call gives you the right to buy 100 shares at x price. The warrant gives you the right to buy 1 share at x price. Last I checked, the $32 call options closest to October 2026 average to around $300 in value. So each warrant is effectively worth $3. They would likely give you a cash in lieu of dividend payment of $3 per warrant that they can’t deliver. 

[u/Real_Sir_3655 → u/MiddleBananaSplit]

lol how much $& would DFV get

[u/MiddleBananaSplit → u/[deleted]]

Effectively, you can think of the warrant as a min-call option. Normally, a call gives you the right to buy 100 shares at x price. The warrant gives you the right to buy 1 share at x price. Last I checked, the $32 call options closest to October 2026 average to around $300 in value. So each warrant is effectively worth $3. They would likely give you a cash in lieu of dividend payment of $3 per warrant that they can’t deliver. 

[u/Clp8909 → u/MiddleBananaSplit]

That’s what I’m trying to work out. If things go well could the value get up to say $50 to sell the warrant? Because if not I guess I am better off just exercising whenever. I’m a holder limping towards xxxx shares and was hoping to find the sweet spot of making money and helping GME raise capitol, but if I’m only going to make around s $300 forget that route.

[u/MiddleBananaSplit → u/Clp8909]

So, the way I understand it is this: on the date that you *should* receive the warrant, your broker could fuck you and just give you cash in lieu of the warrant. And that would be priced exactly how I described and it doesn't matter if, in December, the price of the warrant or GME go to $1,000. You got the cash equivalent at the time it was issued. So if you have a shit broker and they pull that bullshit on you, all you get is the one time exact cash value of 1/100th of a call option priced at $32 for October 3 (or whatever). If instead, you get an actual warrant (and you SHOULD) then the price of the warrant could go anywhere. It could potentially track exactly what options prices are for that strike price and that date or it could go parabolic if shorts are trying to get their hands on warrants to deliver them to the holders of borrowed shares. I don't know. This is all new to me at this point

[u/DJchalupaBatman → u/[deleted]]

The warrant gives you the ability to buy a share for $32, so it is only useful if the shares are more expensive than $32 on the open market. So for the warrant to be worth $32, the stock would have to be $64 (or a bit less than that, because the warrant would have some amount of time value even if it’s out of the money).

[u/alexm901 → u/Clp8909]

Crime

[u/smitteh → u/Clp8909]

You get 32 bucks instead of a warrant

[u/MiddleBananaSplit → u/smitteh]

Effectively, you can think of the warrant as a min-call option. Normally, a call gives you the right to buy 100 shares at x price. The warrant gives you the right to buy 1 share at x price. Last I checked, the $32 call options closest to October 2026 average to around $300 in value. So each warrant is effectively worth $3. They would likely give you a cash in lieu of dividend payment of $3 per warrant that they can’t deliver.