NKLA short exercise

Discussion in 'Trading' started by ScroogeMcDuck, Jul 20, 2020.

  1. Can you exercise borrowed warrants? This seems like the correct thing to do right now because both the warrants and the underlying are headed into the dumpster.
     
  2. Meaning you are currently short the warrants and want to be short the shares? One thing to consider is that the borrow rate is currently considerably higher on the shares than the warrants (on IB, I show 771% on NKLA and 180% on NKLAW).
     
  3. I want to arb the spread without ever going long warrants. But the spread is stabilized now.