I awoke this AM to find two emails in my spam folder with the title of this post being the subject, Part 1 & Part 2.
Thinking I was still foggy, I read & reread, thinking surely it was DJT warrants, then thinking it was truly spam I logged into my ComputerShare account and sure enough, I have 7 GME warrants.
This is the first I've heard of warrants, if CS had emailed me before about them I must have overlooked it in spam, perhaps. So figured I'd start this as a discussion as I'm sure(hoping) there are others here holding GME and/or warrants unsure of how to proceed.
This is all I know so far, no idea of the exercise price.
Exercise price is $32, being it's only about $24 ATM I think it's best to put off exercising. Expiration is October 30 2026.
Although my first share purchased was entirely FOMO, $32 is a helluva bargain! lol
Don’t sell, you won’t get much. Keep them, if the price goes higher than $32 then they become more valuable. I expect a lot of people will be watching quarterly earnings reports. Many institutions have shares now after just recently purchasing them. Their investment advisors are looking at making money so they saw the increases shown in the last quarterly report and have many shares. This is not investment advice as I am not certified as such, however, do your own thing. I’m holding mine, either they will be worth little over time or they could be very valuable. Time will tell and I’m holding.
Yep, I'll hold as well at least for the fact I wasn't even aware of them lol
Aside from the fact I don't have spare funds to exercise at the moment even if I wanted to, so I'll wait. Maybe GME will never shoot the moon, but hopefully at some point in the next year a $32 share will be enticing...
At this point, this is not even about warrants. Its about trapping the short sellers. Just keep them and be part of history.
u/User11212019
^^^^^ This ^^^^^
Short sellers that have warrants issued would now have to pony up the warrants as well as the shares - issuing the warrants may have flushed the squeamish shorts out of their positions before the warrants were issued so they could avoid a double whammy at payback time. The shorts still in their positions (the hedge funds, big finance douche-bags, etc.) will now be holding an even bigger bag when the MOASS happens. What happens to the naked shorts that were holding when the warrants were issued?
This was the real intent of the warrants. The fun is yet to begin!
I agree. No plans to sell myself.
Sorry for the late answer, but I just saw this in my email.
So what you're saying is, DO NOT accept the warrants?
Just ignore and delete the emails then keep waiting?
You dont need to "accept" the warrants. It should already be in your account. Atleast for me, it was since I have my GMEs parked at ComputerShare.
If your email tells you that you have to do certain things to accept the warrants then please do so and confirm that the warrants are in your account.
What I was talking about was exercising the warrants - which means converting the warrants into actual GME shares by paying $34 or so. That makes no sense right now since GME is trading at $24, so better to hold that off until GME trades above $34.
Why would you ignore or delete the email? Keep the email for records and make sure you log into your brokerage account and confirm that the warrants are in the account.
And please, if any of this doesn't make sense, contact a professional. Dont take advice on the internet.
I don't know! I've never done this before! I was told that all I had to do on ComputerShare was buy GME and do nothing!
In any case, I can confirm they are in my account.
That's it. Keep HODLing
I wish I understood this better myself. I don't plan on selling. I'd appreciate being corrected, but this is me thinking out loud. For these warrants to be worth anything, the price of $GME has to be greater than $32 before the expiration, which is about a year out. We all hope that shareholder accountability of short sellers will be corrected, and if/when that occurs many speculate that GameStop share price will dramatically increase. It seems odd to have such a high strike price for these warrants. My best guess is, if some shorts are liquidated, the price will rise, but the $32 exercise price of these warrants will drag the acceleration of that price rise down somewhere above $32. Does that sound reasonable? That is, my best guess is that these are the start of a controlled MOASS measures to mitigate market breakage. I'm pretty confident in saying that these warrants will either be worthless (which I don't think is the case) or they will act as a restrictor to price increases above $32, since the number of shares would start to increase past that point. Assuming we get somewhere past 32, GameStop could have up to a 10% increase in the number of shares while the individual share price would effectively carry 90.90% of it's previous value. This is a very simplistic take, and is only taking basic ideas into account. I'm mostly clueless as to what this all means.
Just for added clarity: I'm optimistic on GME in case it isn't understood from my math rambling.
I've mulled this over a few times since you posted, I'm with you on the first few sentences but unsure of the rest.
It occurred to me the other day though, maybe the stock market will have been transformed by the expiration date. By transformed I'm thinking I heard it would be put on the blockchain, so stock holders are actually holding stocks and no more naked short selling and the value would be over $32 a share.
Maybe but who knows, otherwise I don't see a big rush of people exercising warrants at $32 if the stock isn't at least as much or more.
I agree with you. I think it might be smart to buy these warrants, I just don't think it makes sense to exercise them until the price of GME is greater than 32 plus whatever you might pay for them.
I believe (meaning faith) that there is a good reason they issued these, I just don't get the high exercise price. These are basically $32 call options without being option contracts. I've learned the hard way that options can hurt.
It's exciting to see the GameStop Trump/Halo stuff in the last couple of days. I've held the belief there is a connection between GME and this awakening movement for a while. If they don't fix naked shorting, this movement doesn't mean much IMO.
It's not just the strike price, it's the strike price PLUS capital gains on the profit made by redeeming the warrants. Since the warrants were issued free of charge, literally all of it will be profit except the $32 per share to execute the warrant. Anyone that can explain that better than me (or understands it better), please chime in.
You should be able to sell your warrants at some point once the rest of the market catches up. Gamestop is turning everyone into options traders.
Can't warrants be traded just like regular stocks up until the excise date?
Yes. looks like trading is now active across most platforms.