Dec. 13 at 5:06 PM
$BCTX what do people think about naked short of BCTXW against a 1/10 long position in BCTXZ. Cash wise flat to slightly positive. Net you end up short a warrant that matures in FEB '26 that has an adjusted exercise price of
$796.88 and requires 150 warrants to convert into 1 share. You are also net long warrants that that have an exercise price of
$52.50 require 10 warrants per exercise with a maturity date April '30. Most likely case the "W" roll off worthless and you have free warrants that extend well past the P3 timeline. This is obviously the bullish structure. For bears I guess you just sell the "W" and bank the cash as chance of any value an maturity is very very small. I see little downside to this structure other than transaction costs (need to minimize) and tradable size as it probably isn't worth doing for much less than 50,000 "W" vs 5,000 "Z". Thoughts?
