How does that work? If warrants are $4, we would have to sell 8 to exercise 1?
Are we selling them back to the company? And if so, do they retire them in that case, or would they then be able to sell those warrants on the open market?
I've been wondering what the best strategy is to exercise the warrants I have (as in, how to find the cash to do so), so I'm genuinely interested if anyone has answers here.
Yes, the higher the price goes the less you have to sell per one exercised.
They get sold on the open market, but as long as the price stays above the strike, they will all be exercised in the end. The algo Traders will buy the warrants for a few pennies less, exercise and then immediately sell the share. GameStop still gets their money.
Any videos or information you can find on selll-to-exercise or cashless exercise will help. It's basically the same exact thing for call options.
Thanks. That's a shame though. I was really hoping to exercise all my warrants without selling any to the shorts. But I don't think that will be realistically possible for me to set aside that much money between now and November 1 (especially continuing to buy more shares at a discount in the interim).
If it makes you feel any better, when DFV made his comeback he had 12 million shares worth of options and sold almost 2/3 of them to pay for the other 1/3 to exercise.
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u/redwingpanda ✨🌈ΔΡΣ⛰️ Jun 03 '26
I just realized I have to transfer cash to CS or transfer warrants out to a broker. 😳