Aleafia Health Inc ALEAF

Using Warrants to Cover a Short...explained!

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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 .

[penismightier]

So, pretty much the same as buying your warrants and then selling them. Got it.

[SkataNaFuss]

And this is one of the many issues that need to change!

[predawn]

not enough shares being shorted here to make a pinch of coon $hit  difference 

[stocktracker101]

This post has been removed in accordance with Community Policy

[OldSchooI]

Agreed, ST. Our business model is finally taking shape. This is the beginning of substantial profits, and it will out perform it's peers. Patience is key. AHLooong!!!

[Toweringmars]

Sure thats true, but you you cant open a bigger short position than you have in warrants. And if you're going to give the company millions in financing, then even more to exersize those warrants as it runs into the 5's then I'm cool with that. Necessary evil. The shorting is only temporary and eventually they run out of warrants to cover. Anyone can check Sedar and see how many