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Post by traderdennis on Mar 8, 2019 9:06:03 GMT -5
The short answer is you'll make the difference between the Warrant price ($1.60) and the Short price ($ 1.85) or in this case +.25 per share.
So, in this case, better to exercise the warrants understanding the momentum to the upside, sell at the higher SP and pocket $.50 more per share, even net of short term capital gains tax. nooooooooo. There are so many more profitable ways to make this trade without ever exercising warrants. selling out of the money calls allows for greater profitability than the quarter in both receiving option premium immediately and still having upside on stock appreciation. Shorting at 1.85 and seeing if you can cover below 1.60 without exercising.
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Post by brotherm1 on Mar 8, 2019 9:16:17 GMT -5
[quote author=" traderdennis" source="/post/17Brother, you are thinking like a retail trader. Well then that’s not as bad as what I first erroneously read you said. I first thought you said I’m thinking like a rectal trader. 🙂
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Post by markado on Mar 8, 2019 9:20:57 GMT -5
So, in this case, better to exercise the warrants understanding the momentum to the upside, sell at the higher SP and pocket $.50 more per share, even net of short term capital gains tax. nooooooooo. There are so many more profitable ways to make this trade without ever exercising warrants. selling out of the money calls allows for greater profitability than the quarter in both receiving option premium immediately and still having upside on stock appreciation. Shorting at 1.85 and seeing if you can cover below 1.60 without exercising. I'll concede that this is not my area of expertise, but of all options discussed, and for the less sophisticated retail investors, the simple short - in this specific example - appears to be the least profitable...right?
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Post by agedhippie on Mar 8, 2019 9:21:17 GMT -5
... You might be right. Perhaps the warrant holders are all professional traders that play the hedge game and will keep trading. I don’t know. I guess we might see within this year or so. Thanks for the discussion. Warrant holders are almost entirely professional traders because of the lack of liquidity in warrants, and that a lot of them are traded on the OTC market. There are some retails like me, but we are just there for the capital gain (or loss recently ) rather than properly exploiting the warrants.
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Post by Clement on Mar 8, 2019 9:51:30 GMT -5
wow over 440,000 shares in one minute ---- 9:49
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Post by prcgorman2 on Mar 8, 2019 10:02:37 GMT -5
Really? NEVER? On what do you base your assertion? I’ve been following MNKD since well before there were any scripts. I’ve watched every Friday and have yet to see it happen. Actually, there was the one time when an innocent mistake happened, the monthly script count was mistakenly posted as the weekly count. So it looked like the huge breakout week we had all been hoping for. Share price DID react that day, quite dramatically. Unfortunately when the mistake was discovered the share price went back down. So I’m not counting that time since it was an error. I know some folks here will remember that day. We can both probably find multiple solid up days for the stock price (certainly within the 10 to 15 cent range) and you have no way of knowing what part of that had anything to do with script counts regardless of how good or bad they were.
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Post by peppy on Mar 8, 2019 10:20:19 GMT -5
1,009,130 shares traded real time in the first 46 mins of trade. high volume for MNKD these days. www.nasdaq.com/symbol/mnkd/real-time$SPX sinking trying to hold 2725., MNKD holding relatively so far. Better things to short than MNKD as reflected in the lending rate. 1,200,000 shares traded at the 90 min mark. volume slowed. $1.83.
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Post by brotherm1 on Mar 8, 2019 16:07:18 GMT -5
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Post by peppy on Mar 8, 2019 16:46:11 GMT -5
1,009,130 shares traded real time in the first 46 mins of trade. high volume for MNKD these days. www.nasdaq.com/symbol/mnkd/real-time$SPX sinking trying to hold 2725., MNKD holding relatively so far. Better things to short than MNKD as reflected in the lending rate. 1,200,000 shares traded at the 90 min mark. volume slowed. $1.83. MNKD Nasdaq real time volume, 1,937,724 shares. MNKD Nasdaq summary volume, 3,389,942 shares. MNKD Nasdaq $1.83 -0.02. -1.08% www.nasdaq.com/symbol/mnkd/real-time
Inside week.
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Post by brotherm1 on Mar 8, 2019 21:04:57 GMT -5
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Post by peppy on Mar 8, 2019 21:06:40 GMT -5
Today marked the highest low for the day in about four full months. price, is going to bust up and out.
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Post by sportsrancho on Mar 10, 2019 8:57:07 GMT -5
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Post by peppy on Mar 10, 2019 9:12:36 GMT -5
On Balance Volume. I never look at it. He was looking at the weekly. Good to know he see's it as well. Wolfe to 4 and triangle to 8 are the targets. I am looking at price and price behavior, patterns. Whew. It's not easy being cheesy. Price should move relatively fast once it breaks up and out. This from a hispanic Non Telemundo watcher. That said, you know I can be wrong. I like the inside week. Charts, weekly, daily with on balance volume. joeypotsandpans
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Post by sportsrancho on Mar 10, 2019 12:22:20 GMT -5
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Post by sportsrancho on Mar 10, 2019 13:57:30 GMT -5
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