More SPACs Than Spartacus
It was sad to hear that Kirk Douglas passed away yesterday. But, he was 103, not a bad run.
When I was in college my grandfather passed at 96. I told one of my professors, who also happened to be an Air Force colonel, that I had to miss class for the funeral. His response was, “96, good lord, it was time for him to go.” Nice.
Spartacus, the movie where Mr. Douglas portrays a gladiator/slave who leads a rebellion against the Romans, is probably my all time favorite Douglas movie. If you haven’t seen it…do.
There is one scene in the movie where the gladiator/slave army has been defeated, and the Romans are trying to figure out which of the guys they have captured is actually Spartacus.
And, if I remember correctly, they threaten to start killing guys until Spartacus is identified.
As the camera pans to Douglas, who is about to say who he is, another gladiator/slave stands up and says, “I’m Spartacus.” Douglas is surprised, which turns to pride, as each gladiator/slave stands up and yells, “I’m Spartacus.”
Needless to say, there is suddenly an overabundance of Spartacus’s, where a few moments earlier they couldn’t find one.
Which leads me to a conversation I had yesterday with someone interested in subscribing to my Warrant Observer membership.
Paul asked me what the warrant landscape looks like right now. If I had been quick on my feet I would have described it using the Spartacus scene I just talked about.
I started trading warrants over 20 years ago, and at the time there were enough warrants trading so that a hedge fund, with 7 traders, could each have several warrants that they exclusively traded.
There’s no way I could put a dollar figure on the “warrant market” at the time, but I’d describe it as good.
Not that many people knew how to trade warrants, so it was a nice backwater of Wall Street where you could make good profits under the radar. Unlike today when…oh yeah, right, STILL not many people know the patterns and how to trade warrants.
Then came 9/11, and the chill that put on the markets took a big chunk out of warrant trading.
Flash forward to today, and the current warrant landscape, and I’d swear we were on the set of Spartacus when they were filming that famous scene. Only today, it’s not gladiator/slaves standing up one after another saying “I’m Spartacus”, but public company after public company rising up and saying “I’m SPACicus”.
SPACs popping up like Spartacus
There are more SPACs, or special purpose acquisition companies, than you can shake a stick at, and they just keep coming. OH, and every one has a warrant that publicly trades along with the common.
Compared to the market I traded over 20 years ago…this one isn’t “good”…it’s flat out unbelievable.
There is opportunity, after opportunity, after opportunity in warrant trading today like nothing I have EVER scene. And, it’s not just the SPACs, but the SPACs on top of what is already a good warrant market. It’s nuts.
Here are just a few of the warrants Warrant Observer members have been trading since the first of the year…and it’s just February 6!! Again, so many opportunities it’s hard to keep up.
A few warrants we’re currently in
Feel free to follow along, there is opportunity still in each of these, either long, short, or hedged, and more are coming on the scene daily.
Virgin Galactic (SPCE, SPCEWS) I just wrote a very detailed post on this one two days ago. We’ve been trading it since last year, and continue to rack up the gains.
Blink (BLNK, BLNKW) I took profits on this one this morning, but it could easily ramp higher as a secondary play on Tesla.
Leo Holdings (LHC, LHCWS) We took profits on this one a few weeks ago in the SPACfolio, the Warrant Observer portfolio of SPAC warrants, where we had owned it from $.74, which gave us a 68% gain. And then I sold more from my account this morning on the latest acquisition news. Likely more money to be made after a pullback.
AIG (AIG, AIGWS) I’ve written about this one over and over and over the past year. It’s BORING as all get out, and just keeps making money again, and again…oh, and again. For the love of god, buy the warrant when the stock is at $50 or $51 and sell it when the stock is at $55 to $56. As I wrote in that blog post linked to here, I think this is one of the easiest warrant trades in the history of warrant trading. Oh yeah, and it’s STILL working.
GS Acquisition (GSAH, GSAHW) These guys announced an acquisition, and we got long a few days ago…and up up and away.
Vivint Smart Homes (VVNT, VVNTW) Only sharing my thoughts on this one with the paid Warrant Observer group, but there is a lot of money to be made here if you trade it correctly, and have the timing right.
Diamond Eagle Acquisition, or DraftKings (DEAC, DEACW) Maybe you’ve heard of them. Another one we’re playing…
Oh, and there’s Repay (RPAY, RPAYW) straight up and actually just about to get interesting, and Clarivate (CCC, CCCW) where I’m pretty sure I’m going to make my son’s college tuition for next year in the next month or so, and it goes on and on.
The time for passing interest has come and gone, get in the game. There are literally life altering gains to be made if you know what you’re doing.
As always, see my trades, and know exactly where the action is, right here…