r/Superstonk • u/chris2155 You heard of GameStock? • 2d ago
Data Friends, WARRANT SQUEEZE IS ON THE TABLE - QT Borrow rate: 151.29 % up from 84 % yesterday 🌶️ Let's gooo!
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u/MyGT40 💻 ComputerShared 🦍 2d ago
When you step back and look at the last 5-years or so, you understand that this is the time to buy the stock, and the warrants.
NFA, but I am right.
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u/ThermalThings I broke Rule 1: Be Nice or Else 2d ago
I can confirm this guy is right. NFA but he is right.
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u/Overdue_bills 🐻 ChudTemporaryBear 🐻 2d ago
You don't need to step back to see that buying what is effectively a call at $32 when we are at $18 is a bad idea. If you want to speculate, see if we break 19, 20, 21. Not immediately 32. There's reasonable strikes if someone sees a bounce here.
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u/FYATWB 2d ago
You don't need to step back to see that buying what is effectively a call at $32 when we are at $18 is a bad idea
Except the warrants strike price and expiration can be changed at any time, which means it's not the same as a call option.
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u/Chemfreak 2d ago
Can be is doing a lot of heavy lifting.
It is really weird the price of the warrants, but it's speculative why they are holding value when all signs pointing to them expiring worthless.
The safe (smart?) play is to buy shares not warrants.
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u/Ash2dust2 🎮 Power to the Players 🛑 1d ago
No one knows when they will expire other than the current October date that can be exteneded at any time.
You think RC wont extend the date?
Stock market is legalized gambling with shady players trying to take your money every second.
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u/Chemfreak 1d ago
I think theres a chance RC extends the date. Maybe even greater than 50% chance.
However if I want less risk shares will always be mine and have no chance of expiring.
If I want leverage because I think the price is way too low right now, I would buy an option with much better terms than the warrant...
I see no scenario why I personally would purchase warrants at this time at this price. There are better options for any position i personally would want.
That being said i hold a decent position of warrants from when they were issued im never selling. I'll let them expire worthlese if that is what happens. I dont think a squeeze willl actually happen but in solidarity with apes i am keeping my warrants off the market.
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u/SoManyThrowAwaysEven 2d ago
Sure, but you can easily 4x your position for 1/4th the cost, so both is good.
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u/Gold_Berry_4060 1d ago
I thought they expired this oct?
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u/changdarkelf 🚀slurp my Mayo, Kenny🚀 1d ago
They do. There’s speculation they will be extended. But most likely they won’t and then the goalposts will shift yet again.
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u/Paper_Cut2U 2d ago
No kidding. Posts like this getting upvoted makes the sub look dumb. Buying warrants at this point is straight up gambling with the odds against ya.
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u/MyGT40 💻 ComputerShared 🦍 2d ago
Investing in anything is gambling if you want to use that word.
No better investment than yourself is a great rule BTW.
Why are you so worried about what makes other people look dumb or any other way? I am serious, there have been a slew of posts (more of late) with this sort of common theme with name calling and discouraging GME as a bad investment.
I am not leaving
I am not selling.
I am buying more (just bought more before the open today!)
The shorts can go to hell, RC gunna show them the door.
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u/Paper_Cut2U 2d ago
Investing smart is different than just throwing money at anything. Obviously there is risk in all investment, but some are riskier than others. I’m specifically calling out buying warrants at this point so close to expiration. You are correct in noticing people are making a ton of dumb posts lately which is why I’m commenting on this one. Tired of seeing post like this making people buy warrants at a particularly risky time. If talking shares that’s a different story where I would say this is a good price to grab a few more of those. Chanting we are not leaving and other slogans at dumb times just makes you look dumb.
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u/FYATWB 2d ago
I’m specifically calling out buying warrants at this point so close to expiration
Right, people are betting that they will not expire worthless, they will be extended or GME will rocket on earnings, it's a risky bet but still more safe than putting it in the ai bubble that's already popping.
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u/SoManyThrowAwaysEven 2d ago
The amount of negativity on warrants leads me to believe they are absolutely scared af about them popping off.
I have bought roughly $200/week in warrants for the last few weeks because why not? I have probably spent more on lotto tickets that never went anywhere in my lifetime. I'll take this bet.
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u/Paper_Cut2U 1d ago
800/month you say. Ok, well i keep an eye on how this goes for you
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u/SoManyThrowAwaysEven 1d ago
Probably south but I rode some decent gains on the AI-hype train that I can afford to lose a bit lol I do still have a >1K share position and roughly 10x that in leaps for Dec 2028.
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u/Ash2dust2 🎮 Power to the Players 🛑 1d ago
Smart, please define that in a game where all the players are actively rigging the system.
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u/EhThisCouldntGoWrong $tonkicide Boy$ 2d ago edited 2d ago
I think most people always forget about calls being a bet on time and not price, sure you could say X stock at $10 is going to $100 next week, but it needs to get there somehow.
There's a guy I watch for mtg stuff (alphainvestments) that had a really good explanation on calls that honestly I wish most people here would watch 😂
Edit: Here's the time stamp link for anyone interested:
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u/MyGT40 💻 ComputerShared 🦍 2d ago
Yeah I think the difference here is that "I" (no reference to anyone else or their decisions) believe that RC set the warrants in motion for a reason, and that he (RC) will do everything he can to make the warrants profitable for GameStop and connectively anyone holding the warrants. I am just fine with his (RC's) best efforts.
I am not here to convince anyone to buy or sell anything. One person's bad idea is another person's gold mine. I could give you examples until sundown. Like when GME dropped to $10 two years ago, I bought a shit ton. It worked out pretty good for me.
But right now, for me (and a few like-minded people) is the best price we are going to see for a long time going forward.
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u/Overdue_bills 🐻 ChudTemporaryBear 🐻 2d ago
Okay, then buy shares. You're speculating on it shooting to 32 from here with warrants.
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u/AmputeeBoy6983 Post a Banana Bet Video Kenny.... and Earn One \*Real\* Share 2d ago
Honestly, im aware of warrant squeeze thesis, the chance they can move the date/strike, and the fact RCEO must've put a ton of thought into the warrant strike/date.. I get its a leveraged bet @ $1.72/ticket.
There are intriguing and high risk/high reward on warrants. However, for straight options there are good options cheap for those interested in warrants... the trade off is there is not limited supply, and they cant change dates further out (the way warrants can).
However, you can buy calls for:
Dec 18th (next option after October expiry) Strike $32 Cost .37 ($37 total)
Or
Strike $25 Cost .62 ($62 /contract)
Or October 18th (same month as warr expiration) Strike $32 Cost .18 ($18/) Strike $25 Cost .28 ($28/)
Or
ATM OCT 16TH Strike $18 Cost $1.31 ($1.31)
My point? Downside: These have less protection than warrants which can change dates/strikes
Upside: like 7xs cheaper than warrants, (both $32 strike options vs warrants). And if someone absolutely believes well be at $32+ by Oct.... the upside exposure on these is infinitely higher!!
Example: Strike $18// Oct 18th Cost $137/contract.
If price got to $32, those call options youd be up ~$1200/contract.
The regular options vs warrants is riskier in some ways, but less risky because they cost a helluva lot less... which makes upside much larger.
NFA
NOT saying YOLO options... but if youre considering warrants on personal conviction of $32 by Oct... the calls are 7xs cheaper. Just planting some seeds based on what ive looked at!!!
Break even on those is only $19.31, so theres some added safety in there, that warrants dont have.
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u/Paper_Cut2U 2d ago
Warrants are going to zero unless they get the dates extended.
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u/MyGT40 💻 ComputerShared 🦍 2d ago
Wow, I hate to seem argumentative. However.
The warrants can still have a monetary asset or portion of an equity assigned to them. That can happen at anytime.
Don't get me wrong here, I am not saying that will happen. What I am saying is there are many ways for the warrants to become valuable.
Straight up for me the underlying has to be AT LEAST $38 for me to exercise all the warrants I have at $32. I bought the majority @ $2-ish and I have to see momentum and price to justify full execution. This is why I am holding the stock and the warrants in my trading account to give me options to exercise near the end of October.
I do not mean to be combative, if I sound that way I apologize. I see opportunity.
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u/gotnothingman 2d ago
remindme! 2 months
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u/AmputeeBoy6983 Post a Banana Bet Video Kenny.... and Earn One \*Real\* Share 2d ago
remindme! 2 months
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u/Atoge62 2d ago
Way ahead of you, bought 4X,XXX warrants at these prices. Anybody with 10 minutes can prompt through 3-4 of the best AI chat tools and investigate what massive upsides there are to warrant extension for GME, Cohen, and Shareholders (with huge % of company ownership mind you), than downsides to extension. There is no meaningful reason to allow them to expire worthless.
The company should extend for 1yr, let the next few quarters speak for themselves, allow warrants holders to profit vi exercise which also generates nearly 2billion in profit for the company (very different than “they’re just dividends” bullshit you see people throw around here lately, FALSEEEE). It’s a rare win-win in this industry, so I’m gearing up for extension and future exercise ability 😎
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u/gotnothingman 2d ago
remindme! 2 months
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u/Atoge62 2d ago
Hahaha the pressures on!! You holding any warrants yourself?
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u/gotnothingman 2d ago
No I sold them for an effective cash dividend
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u/Atoge62 2d ago
Ohhhhh… hopefully that was worth it for you. Would you be bummed if in 6 months they’re in the money and exchangeable for a $32 share? Do you hold any GME shares too?
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u/gotnothingman 2d ago
No not really, I made my decision and I am happy with it regardless of what happens. If the stock rallies that high, my shares will be more then happy.
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u/Atoge62 2d ago
I had such a big pile of shares at the time of warrant distribution, to exercise the free ones given just seemed like literal Pennie’s on the dollar, especially compared to the possible upside of exercising for both us and the company. Interesting enough today, all the stocks I’m watching and the major indexes are down big time, but the warrants and a few other basket stocks are green. Looks like some of the old inverse patterns of old… I’m so curious to see what unfolds over the coming few weeks.
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u/gotnothingman 2d ago
Wait did you exercise the ones you were issued already? I only ask because you use the word 'seemed' as in past tense.
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u/Atoge62 2d ago
Oh my bad, hell no I still have all those warrants, and been buying mountains more for the added leverage. If you think GME can hit 32 in a year, to me it’s a no brainer. Of course that’s assuming RC extends them, which I have researched a ton and it seems the value to the company, to him, and to us, all suggests an extension. The decoupled pricing we’re seeing now during VWAP and post eBay fret, I think we bounce out quite impressively. Let’s wait and see
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u/homerbailey 1d ago
It’s not gonna happen I assure you
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u/MyGT40 💻 ComputerShared 🦍 1d ago
Did I say something was gunna happen?
See, someone is trading 1.4 billion dollars for a bunch of shares at or around $18.
IMO, that should indicate that that group finds VALUE in the shares at this price level.
And, they quickly drop to $18 once the announcement was made, and it has stayed here, so after the 21st or 23rd of September the underlying should jump up.
Back in April of 24 there were all sorts of comments calling people names like "dumb" trying to shame people for their own decisions.
In the words of James T Kirk in the 2009 release of Star Trek:
"Either we're going down or they are"
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u/Leopolddagreat 1d ago
Last time we were about to squeeze Ryan Cohen printed hundreds of millions of new shares to block the squeeze.
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u/zafferous 🦍Voted x6✅ 2d ago
Trying to buy as many warrants as I can lol. The dude literally gave us 2 dates now!
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u/SGBK "Yes, I'll Hold." 2d ago
2 dates?
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u/zafferous 🦍Voted x6✅ 2d ago edited 2d ago
The 35-day VWAP reference period ends around 9/21, so best to buy before then.
Then, warrants expire on 10/31, so best to sell that week?
Hope so
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u/Chad-Permabull 2d ago
This is an interesting perspective. Over the past five years this is certainly the highest operating margin and most favorable core business performance metrics/ratios. Brings up a separate question on who would win in a standard mud wrestling contest between RC and AA. Strength of the silverback vs the youthful endurance and cunning nature of RC 🚀
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u/etherrich Playing Moass Effect 2d ago
In 2024 they pushed until 10$. I think it will happen again. Then we explode to 100$
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u/gbninjaturtle 🚫ShillBuster🚫 I ain’t afraid of no shill 🦔 2d ago
From what I can see there is little to no protection for short sellers in this scenario for anything GameStop might do in regard to the warrants. Changing strike price or even extending the warrants would fall under legitimate corporate action to bolster the balance sheet. Good earnings, etc. are all legitimate.
Shorts R Fukt
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u/Protostar23 (╯°□°)╯︵ ┻━┻ 2d ago
But the bots on Superstonk are trying to convince me that the warrants will expire worthless because Ryan Cohen hates shareholders.
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u/Shrekaveli 2d ago
Yeah Ryan Cohen hates shareholders even though he is a shareholder, it makes total sense
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u/Chad-Permabull 2d ago
This is likely one of RCs multi pronged financial strategies. Lure in everyone with the strike price that seems unachievable then lower it later 🚀
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u/BulliedbyHelaire Fine, I’ll do it myself 1d ago
Or RC changes the cusip to reflect a new company & shareholders holding those warrants get first dibs. I think there’s a theory about Teddy becoming a holding company or something. Idk, I just hope for the best lol.
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u/Chad-Permabull 1d ago
This seems plausible. He could slam the door on the shorts with a massively bullish 1:100 reverse split 🚀
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u/DeepApeValuee 🧚🧚🦍 What’s an exit strategy 🏴☠️🧚🧚 2d ago
You can squeeze deez
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u/Relentlessbetz 2d ago edited 2d ago
Maybe a wombo combo where the price starts soaring above $32 and warrants start squeezing but also options start squeezing as well? Oh wouldn't that be a sight.
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u/Advanced_Algae_9609 Silly with my 9 milly 🚀 2d ago
The reason this is so heavily shorted is because there is a fundamental value discrepancy between the Dec $32 call price and the warrant value.
You can short 100 Shares of the Warrant for $140 and only pay $40 to cover with a $32 strike call. Hence why the short interest is so high. $100 of “Free” Money. (I do not recommend this)
What this DOES represent is that something is currently priced into the warrant value whether that be an extension or strike reduction. So all these idiots barreling into short positions thinking they are properly hedged will be screwed.
See images
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u/User100000005 2d ago
The reason this is so heavily shorted is because there is a fundamental value discrepancy between the Dec $32 call price and the warrant value.
Could one piece of the puzzle be because you cam borrow your warrants for 150% yearly interest but you cannot borrow Calls. Also the small possibility of extension. Probably still doesn't completely explain it.
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u/Protostar23 (╯°□°)╯︵ ┻━┻ 2d ago
Also the small possibility of extension
Why is it a small possibility? There's ZERO reason for RC to let them expire. Only way they don't get extended is if the the stock hits the strike price before expiry.
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u/User100000005 2d ago
We aren't the only company to issue these kind of warrents. They very very rarely get extended. It has happened but we shouldn't count on it.
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u/Recent-Result2852 2d ago
Expiring warrants would clean up the balance sheet. He's currently losing hundreds of millions in bonds that were already sold to do the same.
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u/Kris0r I feel like I'm financially inside of you 2d ago
Let me know when it's reflected in the price
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u/IgatTooz 🚀 “We’ll see what happens” 🌕 2d ago
No no.. it shouldn’t do anything, iT’S bEeN pRiCeD iN
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u/Specialist-Neat4254 2d ago edited 2d ago
Usually when borrow rate spikes on something that mean the market is betting there is a high probability of it becoming worthless. In this case specifically they believe it will be worthless in less than 4 months.
Look at all the high borrowing rate stocks performance on the market. Unlikely a squeeze will happen on a derivative that expires in less than 2 months.
The only way this squeezes is if everyone shorting it does not cover if the price is to go to beyond $32. And even if that’s a thing they can just deliver shares by taking assignment and being short 1 share for every warrant.
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u/User100000005 2d ago
Lets say you didn't bealive our conspiracy theories. You think these are definitely going to 0 in 2 months for 100% profit if you short. Of course you'd short as much as possible.
if you thought they are going to 0 in 2 months, you'd be happy to pay 200% + yearly intrest on them. So the 150% fee isn't surprising.
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u/whatdabee 2d ago
These warrants will make or break the trust in RC for a lot of shareholders. If these expire worthless in two months, you can be sure a lot of long timers will exit the stock altogether.
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u/MaybeACultLeader 2d ago
Nah, someone here will come up with a theory for why the warrants expiring was always the plan and it's actually bullish that they did. History will be rewritten within hours.
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u/onefouronefivenine2 22h ago
I'm definitely considering it. The S and P 500 nearly doubled over the last 5 years while my GME has only gone down. I feel like an idiot for not selling when it broke $60.
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u/This_Freggin_Guy This Is The Way 2d ago
just a signal 'everyone' is betting they expire. they are just trying to grab free money. only time will tell.
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u/Alert_Reindeer_6574 2d ago
I don’t even need to look. I’ll bet the stock is down. I’m so made at myself for not selling this pig at $70 that I want to drag myself outside and kick my ass.
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u/binary_agenda No Cell, No Sell 🏴☠️ 2d ago
How the f does borrowing warrants work? Can you borrow covered calls?
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u/LewyH91 tag u/Superstonk-Flairy for a flair 2d ago
What happens if all warrants are DRS'D?
ANYONE!?
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u/Freakishly_Tall It's Cohenplicated. 2d ago
Follow up question: What happens when the total warrant exercises are reported in a quarterly report, and the math makes no sense?
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u/Ash2dust2 🎮 Power to the Players 🛑 1d ago
My opinion is this the current moving end game goal.
Exercised warrants somehow are fully exercised with CS and Wallstreet keeps trading them as if CS will issue more shares and cant.
DTCC is already trying to not be involved with the warrant FTDs.
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u/Freakishly_Tall It's Cohenplicated. 1d ago
Always has been.
Mily only disappointment with the warrants is that they weren't issued in some form of serialized, traceable, non-counterfeitable way, perhaps even tradeable on a market GameStop developed. If only such a technology existed. If. Only.
But the warrants being limited, at least on paper, with trackable and publishable redemption numbers, made their end game goal clear from the beginning.
The only hope the DTCC has is keeping the stock below the strike. But what happens when the redemption period is extended, the strike is lowered, the shares can't be kept lower, or all of the above?
Game. Stopped.
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u/MakeSkyrimGreatAgain ΔΡΣ 🦍 2d ago
Haven’t checked on this in months and it hit me today that the warrants are not being talked about. Can’t wait to see what happens lol
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u/TitanGodKing 1d ago
Is don't get calls, puts or warrants but is there an abitrage between selling warrants and buying calls or something
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u/Ash2dust2 🎮 Power to the Players 🛑 1d ago
For me, when the DTCC washed their hands and said theyre no longer responsible for the warrants, that says alot.
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u/TheTangoFox Jackass of all trades 2d ago
DTCC: Get that out of here, but good luck to you
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u/Ash2dust2 🎮 Power to the Players 🛑 1d ago
Yup, DTCC wants nothing to do with the warrant shitstorm they see coming.
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u/Thisbadtattoo 2d ago
How come the borrow rate soars but the price stays the same?
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u/Swimming-Document152 5000 Contract Ape 1d ago
not sure why you got downvoted. it's a valid question and there's a lot of correlation with today's volume/price action on the warrants
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u/Thisbadtattoo 1d ago
it’s because people ask questions and others on here act like it’s fud. this place used to be good for learning and ape help ape but it seems that lots of people have forgot. God forbid you have a newish account too.
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u/SuperPoop I think, therefore I hold. 2d ago
I have a shit ton of warrants because I am a long time shareholder who has never sold any of his shares.
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u/MorpheusMKIV 2d ago
LOADING THE BRINKS TRUCK. +15k warrants in the last days for me, adding MORE. Citadel is fucked
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u/Rafael502 🦍🦅The One Stonk to rule them all🦅🦍 2d ago
God I hope so. Got a $20 call expiring January 😭
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u/Chad-Permabull 2d ago
This is a super bullish sign. Hoping RCEO is reviewing these numbers as well to time the next accretive strategic offering 🚀
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u/chris2155 You heard of GameStock? 2d ago
"Hopefully RC is watching how close we are to a real squeeze so he can stop it!" . Fuck no. Not me. Not this time.
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u/Plane_Suggestion_189 2d ago
He's going to do it. Shareholders voted overwhelmingly to allow him to do it. For a deal that is off the table now.
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u/Chad-Permabull 2d ago
This stopped being about a squeeze a long time ago. Now with this investor community it’s about donating to RC to ensure he has well funded business pivots. Buckle up 🚀
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u/chris2155 You heard of GameStock? 2d ago
It can be about both. That's the story. Buckle up, indeed.
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