Nikola Corporation (NKLA)

[Willysmb]

I see what you mean but I believe the stock must trade above $20 for 20 days. If price is $20-30 for 20 days, my $6 warrant would get me just over a half share. A half share at $30 gives me $15 for my $6 warrant. When warrants were $6, shares were $20, a share holder went from $20 to $30, a warrant holder would go from $6 to $15. I like the later option.

Lets be more realistic. With volatility it may take a few months to stay above $20 for 20 days. Jumps may make average price $40. My $6 warrant would get me .71 of a share (or $28.50). Again a shareholder went from $20 to $40, doubling, but a warranty went up 475%.

Nikola may never call the warrants and they may trade $11.50 below share price which would yield same number as above.