PSTH Vs. CCIV
Summary
- PSTH warrants are trading at a premium of $9.
- CCIV warrants are trading at a discount of $9.
- no rationale can explain both.
As of 2/19/2021, three top SPACs and their warrants are trading at diagonally opposite direction. The warrants of PSTH is trading a huge premium of $9.39 relative to the stock price, while the warrants of CCIV and STPK are trading at a discount of $8.93 and $6.11 Discount!
Issuer Symbol |
Price Date |
Stock Price |
Warrant Price |
strike |
Warrant Discount |
CCIV |
2/19/2021 |
52.94 |
32.51 |
11.5 |
8.93 |
STPK |
2/19/2021 |
46.40 |
28.79 |
11.5 |
6.11 |
PSTH |
2/19/2021 |
29.91 |
16.30 |
23 |
(9.39) |
There are many explanations for either the discount or the premium of warrants, but how can we explain both the premium for PSTH and discount for CCIV and STPK? One has to be wrong.
What adds salt to insult is that all three stocks and their warrants are amply shortable and the shorting costs are negligible relative to the magnitude of the discounts and premium. So is it a life-time opportunity? Or am I am being blinded to this trap?
Analyst's Disclosure: I am/we are long PSTH, CCIV.WS, STPKWS.
We are also short PSTH.WS, CCIV and STPK
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