Convertible impactIt is interesting that when the convertible debt was announced, the stock was trading around $7.75. We have traded back through that level in just over a month. It bottomed out at about $6.50. Between that $1.25 move lower, the short position increased by 7 M shares representing the convert buyers who went short the stock. As it trades higher they will unwind their shorts. Simple math, looking at it in $.25 increments, that means that they will need to cover 7M divided by $1.25/.25 = 1.4 million shares every 25 cent move higher to delta hedge their position. Perhaps they look at the conversion price of the call as the point where they fully cover their shorts. So let's be conservative and take half of 1.4 million shares. Simply put that would mean 700K shares of short coving for every 25 cent move in the share price. It will be interesting to see where the most recent short interest is to see if this math works.