$SPCE Actual DD - heaviest sell pressure incentives to be hedging a June 18 warrant exercise

"heaviest sell pressure \****incentivized*** to be hedging a June 18 warrant exercise"

$SPCE is over $500mm market cap now so we can talk about it:

$SPCE has a 31.7M share warrant exercise window that begins June 18th 2026 (and ends December 18th 2030), and their strike price is $6.696.

This means 31.7M shares are in the money and institutions have the right to exercise which creates 31.7M shares on the spot, to sell. Starting June 18th, which is coincidentally after the SpaceX IPO based on current schedule

Like an option, institutions would have to put up the cash to own 31.7M shares at $6.696, and try to flip them on the open market. Nobody really expected the space sector to heat up like this so soon, so there is an incentive to lock in profits by taking short positions against their future long that can cover it later this month.

This price action moves their delta closer to .5 - .7 given the high volatility and time remaining, meaning that institutions would seek to go delta neutral on half to two-thirds of their position

[https://www.sec.gov/Archives/edgar/data/1706946/000119312525325124/d667551d8k.htm](https://www.sec.gov/Archives/edgar/data/1706946/000119312525325124/d667551d8k.htm)

This is a lot to locate and would not shake my confidence in a rally into SpaceX IPO heating up the space sector, we like the stock

Lets get more weeklies on this thing