Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

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Nov 6 4:00 PM EST

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To: Michael Collings who wrote (8409)	3/13/1998 10:07:00 PM
From: Zebra 365	Read Replies (1) of 27307

Michael, You may short the stock in front of the options to cover the conversion. This is similar to the process I posted yesterday regarding warrants in TAVA... In the case of the $25 option on a $50 stock, you would wind up with half as much stock as you had options, free and clear. www3.techstocks.com Let's say you have 1000 TAVAW (ignore the price you paid, doesn't matter) You need $3500 to convert your warrants (one TAVAW warrant plus $3.50 gets you one TAVA share.) TAVA is trading at 9. You short 400 shares of TAVA and receive $3600. You now have 1000 TAVAW, $3600 cash, and you owe 400 TAVA. Deliver 1000 TAVAW and $3500 cash, and receive 1000 TAVA You now have 1000 TAVA, owe 400 TAVA and have $100 cash Deliver the 400 TAVA against your short, and you wind up with 600 TAVA free and clear, and $100 (course your broker has taken that in the commissions I didn't count.) That was my plan to convert my TAVAW, until Schwab refused to margin TAVA, so I sold them outright before the call. But it does illustrate how a warrant call can put down pressure on the stock price without the help of the evil MM's. Zebra

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