Replies to post #6722 on Sphere 3D Corp (ANY)

[commoncentsinvestor]

I think OVRL's movement is indicative of what is going to happen to SPIHF when it becomes marginable.

[viking86]

as I discussed before, if you have a margin account like I do, you should continue buying OVRL instead of SPIHF before the uplist if only for the marginability currently available to OVRL but not to SPIHF. Not sure about other brokers but ETrade still allows me to buy OVRL up to 4x the cash I have on my account. That's a leverage of 300% vs. a meager arbitrage leverage of typically 10%. Of course you donot want to max out the margin but even a 100% leverage via margin (at an APR of say 7%) is 10x the typical leverage you get through arbitrage. Even if the broker adjusts the margin down from one day to another as you pointed out, so what? you get a margin call and need to make a small deposit (usually a couple hundreds to max a thousand+ $ in most cases)to satisfy the margin call but you own 2x as much stock as you would w/o the margin and the deposit boosts your buying power again when the stock's margin gets readjusted upwards.

When SPIHF uplists and becomes marginable then I would play the arb game for a leverage of min 5% before the arb opportunity window closes when the merger is closed upon. JMO