Furry
WoW Office
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Investing General Discussion
- Thread starter Furious
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Sanrith Descartes
Veteran of a thousand threadban wars
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Warrants allow you to play the SPAC on the cheap. They also can allow for arbitrage plays. Like shares, the intention is not to keep the warrants.
If the floor on a SPAC is $10 the floor on the warrant is $11.50 in general so the stock has to be trading at $11.50 for the warrant to have intrinsic value. So lets say you see a SPAC share rise to $15 and you see the warrant selling for $2. Technically an arbitrage condition exists because the intrinsic value of the warrant is $3.5 ($15 - $11.5 = $3.5) and it is selling for $2. The risk is that the warrant can't be exchanged until its called for. So the stock price might drop in that time. Some people play warrants exclusively looking for arbitrage openings hoping that they close up and they can sell and capture the arbitrage as a gain. So when you so CCIV selling for $16.16, its implying a stock price of (16.16 + 11.50 = $27.66) $27.66 so if you are sure the value of the stock is going to stay above $30 then this is a profitable arbitrage scenario as you would buy the warrant for $16.16 and then pay $11.50 to convert to a share. Thus you spend $27.66 for a share worth $30. The risk is... The share price drops before the warrant is called.
If the floor on a SPAC is $10 the floor on the warrant is $11.50 in general so the stock has to be trading at $11.50 for the warrant to have intrinsic value. So lets say you see a SPAC share rise to $15 and you see the warrant selling for $2. Technically an arbitrage condition exists because the intrinsic value of the warrant is $3.5 ($15 - $11.5 = $3.5) and it is selling for $2. The risk is that the warrant can't be exchanged until its called for. So the stock price might drop in that time. Some people play warrants exclusively looking for arbitrage openings hoping that they close up and they can sell and capture the arbitrage as a gain. So when you so CCIV selling for $16.16, its implying a stock price of (16.16 + 11.50 = $27.66) $27.66 so if you are sure the value of the stock is going to stay above $30 then this is a profitable arbitrage scenario as you would buy the warrant for $16.16 and then pay $11.50 to convert to a share. Thus you spend $27.66 for a share worth $30. The risk is... The share price drops before the warrant is called.
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Tmac
Adventurer
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Just follow this thread and as people post about what they’re getting into ask about it or just follow suit.
Sanrith Descartes
Veteran of a thousand threadban wars
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I am not your financial advisor or family member, but unless you live at home and have zero bills don't put a single dollar into an investment account. Put it in the bank or under a pillow. I don't know your situation, but if you think you might need that cash in 6 months or less, it shouldn't be in an investment.
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Jozu
Bronze Baronet of the Realm
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lol thanks, I wish i knew what that meant. out of the money, extrinsic value, Im too green for that I think.Buy some OTM call options on nearly bankrupt companies and diamond hands that shit.
Right now im just examining the general data points when it comes to analyzing stocks. Quantative and Qualitative approaches etc. Maybe im out of my mind, but Im still going to fucking try.
Hateyou
Not Great, Not Terrible
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I don’t think investing is a good idea at all when you don’t have steady income. Not having a job you will need money in the short term and actual
investing is long term. If you’re trying to day trade to make money that isn’t really investing and that’s even riskier. Just hold out until you get income then start. I know it sucks but wait until you get out of your situation first.
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Sanrith Descartes
Veteran of a thousand threadban wars
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I'm not saying this to sound like a dick, but your post reads like you are out of work and read about the GME/AMC/Dogecoin millionaires and think it can work out for you.
You probably don't want to hear it, but investing is probably the worst thing you can do. Your odds are probably better putting it red/black on a roulette wheel. I say this because your lack of skill and knowledge won't hurt you there.
If you had Blazin's background and experience I might feel different (but probably not). This isnt the place for your cash. Hold on to it until you get back on your feet.
That is my honest advice. If you choose not to heed it then try to front run the next fomo /wsb and hope you get lucky and be the first one out the door.
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Jozu
Bronze Baronet of the Realm
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Thanks man!
You literally described exactly what I thought lol.
Although to be fair to myself I have been thinking about it for a long time. I made 74k last year, and have about 18k in a IRA.
I just wanted to try and invest 1k and try it. Honestly I have spent 1k on much much worse shit. I have been super depressed about losing my job. I have a degree in fine art/graphic design and have always been very good artist. I would love to start that career but Im not a business man and dont know how to market my work. (my whole adult life was running high pressure boilers, kind of like homer simpson but non nuclear)
You literally described exactly what I thought lol.
Although to be fair to myself I have been thinking about it for a long time. I made 74k last year, and have about 18k in a IRA.
I just wanted to try and invest 1k and try it. Honestly I have spent 1k on much much worse shit. I have been super depressed about losing my job. I have a degree in fine art/graphic design and have always been very good artist. I would love to start that career but Im not a business man and dont know how to market my work. (my whole adult life was running high pressure boilers, kind of like homer simpson but non nuclear)
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Jozu
Bronze Baronet of the Realm
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Yeah. Im looking at a couple different platforms. Etsy maybe. I just need to produce work and the rest takes care of itself. I just havent wanted to create as I have been so depressed. But the time to create is now, during this fucking virus. Im almost done with my first "masterpiece". Been working on it for 6 years now, (on and off, could of finished it years ago). I have a really great working method for creating unique pieces. (involved using magazines)
But Im going to invest either way. If i lose my 1k I lose it. I just want to see how it all works for when I do get serious i will have some experience at least.
But Im going to invest either way. If i lose my 1k I lose it. I just want to see how it all works for when I do get serious i will have some experience at least.
Moglyzoke Moogleman
Stock Pals VP of Shit Stocks
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You can go as low as $50-200 bucks if you really want something to do, but keep the losses to an absolute minimum.
The way I look at it is, if you can't be successful with a small amount, how are you going to be successful with a larger portfolio? I've started on this same principle and keep adding as I feel comfortable. I also am not out of work, though, so even if the money is gone I won't be SOL.
My 2 cents as a fellow new trader looking to learn.
Pogi.G
Silver Baronet of the Realm
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If you are truly green. I would spend a few months paper trading to learn the ropes. I believe Webull has paper trading. I would learn ABCD chart pattern trading first. It is easy to learn and recognize and can hone the skill paper trading.
Tmac
Adventurer
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Invest in yourself. If you’re actually a good artist, put that $1000 into materials or joining diff orgs that can let you meet people.
Paint shit, put it in restaurants, build shit, throw it in your yard, do whatever you can to get exposure.
If you’re depressed this will be near impossible. So snap out of it, move against everything within yourself that says do nothing and masturbate. Do what you’re good at and show it off. Sell it. Make money. Rinse/repeat.
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What state are you in? If you made 74k last year and lost your job due to Corvid, you should be getting at least 25k per year in unemployment plus you would most likely qualify for a few hundred a month in Food Stamps.
This is a paid vacation for you, is it not?
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Rangoth
Blackwing Lair Raider
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You can start with small amounts like 200$. I did. It is a little more challenging since some things are simply beyond your price point, but you can still do well. The biggest fail i made early on was dreaming too big. 11% doesnt seem like much with 200$ since its only 22$. But remember it was 11%! Just be patient as you roll up.
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Khane
Got something right about marriage
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Sanrith Descartes
Veteran of a thousand threadban wars
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Have you tried FVRR? It is a great marketplace for your type of work. And don't remind me that I missed a limit order to buy their stock at $17 by a quarter a few years ago. Man that still stings.