Nikola Corporation (NKLA)

[Scandle34]

OK, so it is impossible to use the warrants as the borrow to short and there are no shares to short. That puts a floor under the warrants price within reason.

Also, if the cost to borrow is really $1/day then $17 of the $25+/- arbitrage would be swallowed up by borrow fees. While the arbitrage is still meaningful (33% in 3 weeks), if no one CAN borrow, then the imbalance will remain.

Ultimately share price will spike down into the $40's or low $50's and warrants will go up some in the worst case. As the 6th approaches either the stock will edge down towards the warrants or the warrants will come up (likely some of both).