TSXV:CLAS.H - Post by User
Comment by
SizzlinSteakson Apr 17, 2018 10:45pm
155 Views
Post# 27902237
RE:This is how institutions short shares with warrants
RE:This is how institutions short shares with warrantsThat is one senerio, but there are other possibilities. It sounds like you are implying that the same institution that holds the warrants is shorting the stock (very possible). However, there may be a different institution or entity, that is well aware of the fact Echelon is dumping to exercise debentrues so they are shorting to bring it down, knowing very well Echilon will play right into their hands and sell them cheap shares. Make sense?
The thing I don't understand is why Echelon whould wait until the last week to sell, when they've had 4 months to do it at much higher prices. So dumb. What a bunch of knuckle heads. Oh well, one's misfortune is another's opportunity.
mingzhu wrote: suppose they have 1 m share and 1 m warrants. They short shares of Kaly at 0.20, SP goes to 0.13, they got 0.07 profit. It goes to 0.10, profit is 0.10,but they lost 0.03 of warrants It is still 0.07 in the end. If they are wriong. SP goes up to 0.30, thye lost 0.10 but they can exercise warrants at 0.13, get back 0.17. They still have 0.07 profit. No matter what happen to SP, they always win..That is why they are so confident to short shares with warrants backup.