GREY:ALEAF - Post by User
Post by
go.faster@ymail.comon Jul 23, 2020 8:56am
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Post# 31306510
Using Warrants to Cover a Short...explained!
Using Warrants to Cover a Short...explained!
Sometimes companies have to give warrants for financing- - this allows riskless shorting and covering on an almost endless loop - say you have some of the $4 and $2 warrants - the right to buy ALEAF stock for those prices at anytime through warrant expiration.....well you let the stock run and then when it gets deep into the 5's (for the $4 warrants) or even the 4's for the $2 warrants - well you can short the stock at will all the way up to the number of shares covered by the warrants....Riskless shorting because YOU KNOW you can always cover at $2 or $4 by exercising your warrants .