Now that the window to convert warrants (DJTWW) into shares (DJT) is open, by paying $11.50 per warrant to convert, then the price difference between warrants and shares SHOULD stay pegged very closely to shares being traded at an $11.50 premium, compared to warrants... But they're currently not.
As I type this, that premium is only $8.63 which means shares are priced at a bargain, compared to warrants. So, basically, $11.50 minus $8.63 equals a discount of $2.87 currently.
Because of this, I'm temped to sell my 2,000 warrants, and use that $ to buy 1,280 shares. Doing this would mean, essentially, that I would be saving ($2.87 x 1,280 = $3,673) vs. if I wait to convert those warrants down the road.
This is in an IRA, so there is no tax implication for doing this. I just wanted to see if anyone had any thoughts on this that I might be overlooking, before I go ahead and do this. Thanks.
You purchase a warrant (ticker symbol DJTWW) and that gives you the option to convert (exercise) it into a share (ticker symbol DJT) for $11.50.
So for example a warrant is currently $16 and paying the additional $11.50 at some point in the future brings your share cost to $27.50.
The time frame to exercise runs until sometime in 2029… I just saw the date today on my brokerage but already forgot what it is. Also, you don’t have to ever actually exercise a warrant; instead you can sell it, just as you would sell a share, but again the clock on doing anything with a warrant ends sometime in 2029.