You wouldn't make twice the money. You might be able to make a little more, but I think most toxic lenders wouldn't consider it worth the risk. The regulators are watching them now.
Years ago, almost all of them used to sell ahead of conversions on the theory that it wasn't naked shorting because they technically had stock to cover. The SEC decided it disagreed with them about that. But given the huge discount to market they get on conversion, and their complete protection against inevitable drops in stock price, they still make out like bandits.
They do often convert before they should, using state exemptions from registration that are almost always inapplicable. The SEC is cracking down on that, too.
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