Quote:
Originally Posted by jaisonline
Hey 7 sins
A post about level 2 would be great. I use it but probably not to the extent it should.
I was wondering about the recent “gap” in warrants vs. stock price for SPACs like CCIV & especially SOFI. I picked up SOFI warrants early last week and still can’t believe the difference over $11 currently. How do you explain such a difference? I know the avg retail investor probably doesn’t know or want to go through the exercise process (my broker only charges $40 per batch) and some other reason.
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it's weird how the gap seems to be getting bigger as the stock goes up. i'm assuming it's due to the risk of buying in at this high of a price and having it potentially go down before you can exercise, and in effect paying a huge premium, but i'm not sure why the gap is this big because you can still exercise and make a good profit. i'm patiently waiting for a small sell off to take advantage of the gap, will probably add a little bit before the sell off too, in case it doesn't happen like with DKNG. the leaps are moving faster than the warrants at this point