Rights / Warrants Strategy

B

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?
 
bob2007 said:
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?
More...
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.
 
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