Rights / Warrants Strategy

Discussion in 'Options' started by bob2007, Aug 12, 2020.

  1. bob2007

    bob2007

    BMY RT
    BRISTOL MYERS SQUIBB RTS COMPANY EXP 03/31/21 CONTINGENT VALUE RIGHTS

    What do I do with this?

    1. If I think BMY will go down, I will exercise the warrant and sell the stock?
    2. If I think BMY will go up , I will just hold the warrant until #1?
     
  2. ironchef

    ironchef

    This is a Celgene CVR (contingent value right). A binary options. It either pays $0 or $9 depending on three events, it has nothing to do with BMY stock valuation. However, since BMY stock holders will be on he hook for either $0 or $9, when the expiration approaches, BMY stock value may be affected based on the likely outcome.
     
    Same Lazy Element likes this.
  3. bob2007

    bob2007

    O Ic thank you very much.
     
  4. ironchef

    ironchef