Understanding Opendoor Warrants — Simple Q&A for Long-Term Holders
Hello, good afternoon!
I just finally had time to check my phone, and I noticed many people still have questions about the Opendoor warrants.
Here’s one of them below 👇
Here’s one of them below 👇
Here’s my reply to this question 👇
OPENW is traded just like a normal stock in the market.
So if the market price shows $0.60, that means:
👉 you can buy it at $0.60
👉 or sell it at $0.60
(just like buying or selling any regular stock)
If OPENW goes to $1, yes — you can sell it at $1 anytime during market hours, the same way you sell a normal stock. No need to exercise anything right now.
Exercising (using the $9 strike price) only matters in the future, and only after the company officially allows exercise — usually much later.
Right now we are only trading the warrant itself.
And the reason I buy only a little is because the market price is around $2 now, and I don’t have a lot of extra cash.
But for me, it’s still very worth it:
👉 I pay around $2 today
👉 In the future, when the company grows stronger, I can use the $9 strike price to convert it into a real share
👉 So my total cost per share becomes only $11 (9 + 2)
If by 2026 the stock is, for example, $31 or above, then I can convert and each share would be worth $31+ while my cost is only $11 — meaning I could still make around $20 per share.
For someone like me without a lot of capital, this is a good way to get exposure to future upside by paying less upfront.
Hope this makes sense! 😊
(Not financial advice — just sharing my own understanding!)
So if the market price shows $0.60, that means:
👉 you can buy it at $0.60
👉 or sell it at $0.60
(just like buying or selling any regular stock)
If OPENW goes to $1, yes — you can sell it at $1 anytime during market hours, the same way you sell a normal stock. No need to exercise anything right now.
Exercising (using the $9 strike price) only matters in the future, and only after the company officially allows exercise — usually much later.
Right now we are only trading the warrant itself.
And the reason I buy only a little is because the market price is around $2 now, and I don’t have a lot of extra cash.
But for me, it’s still very worth it:
👉 I pay around $2 today
👉 In the future, when the company grows stronger, I can use the $9 strike price to convert it into a real share
👉 So my total cost per share becomes only $11 (9 + 2)
If by 2026 the stock is, for example, $31 or above, then I can convert and each share would be worth $31+ while my cost is only $11 — meaning I could still make around $20 per share.
For someone like me without a lot of capital, this is a good way to get exposure to future upside by paying less upfront.
Hope this makes sense! 😊
(Not financial advice — just sharing my own understanding!)
Here’s my reply 👇
Hi! Let me explain it in a very simple way 😊Your understanding is almost correct, but just missing one small part.If you buy 1,000 OPENW at $1.8, yes — you are paying $1,800 upfront.And in the future, if you choose to exercise, then you would need to pay another👉 $9 × 1,000 = $9,000to turn them into real OPEN shares.So your total cost per share becomes:👉 $1.8 + $9 = $10.8If OPEN is $13 at that time, the value of each share is $13.So your profit would be:👉 $13 – $10.8 = $2.2 profit per share👉 $2,200 total profit (for 1,000 shares)Not $4 profit, because you must include the $1.8 you paid for the warrant.And also — if in the future you don’t have the cash to exercise, it’s totally fine.You can simply sell the warrant at the market price at that time, just like selling a stock.But remember — these warrants expire on November 20, 2026.If you don’t sell them or exercise them before the expiration date, they will automatically become worthless.Hope this makes sense!(Not financial advice — just sharing my understanding!)
Lastly, I want to share one more thing with everyone — and this part is just a small message I want to add at the end:
If you are a supporter of Opendoor or a long-term shareholder and still have more questions, you’re very welcome to visit my profile and check out the posts I’ve shared.
I’ve already explained many topics in detail — simply because I truly believe in this company, and I only hold this one stock. That’s why I follow every update closely and try my best to share anything important whenever I see it.
If you’re a real long-term investor, the best thing you can do while the company continues to improve is to stay patient, keep your conviction, and avoid spreading fear. Don’t let panic or negativity distract you — it only helps the wrong people.
And honestly… it would help a lot if you follow me, because almost every question people keep asking has already been answered in my previous posts. I’m really busy these days — seeing doctors, attending classes far away, driving long distances, and taking care of my family and my cats — so I don’t always have the energy to repeat the same explanations again and again. I hope you can understand.
Wishing all of you a wonderful day — and good luck to all of us on this journey. 💙🚀
If you are a supporter of Opendoor or a long-term shareholder and still have more questions, you’re very welcome to visit my profile and check out the posts I’ve shared.
I’ve already explained many topics in detail — simply because I truly believe in this company, and I only hold this one stock. That’s why I follow every update closely and try my best to share anything important whenever I see it.
If you’re a real long-term investor, the best thing you can do while the company continues to improve is to stay patient, keep your conviction, and avoid spreading fear. Don’t let panic or negativity distract you — it only helps the wrong people.
And honestly… it would help a lot if you follow me, because almost every question people keep asking has already been answered in my previous posts. I’m really busy these days — seeing doctors, attending classes far away, driving long distances, and taking care of my family and my cats — so I don’t always have the energy to repeat the same explanations again and again. I hope you can understand.
Wishing all of you a wonderful day — and good luck to all of us on this journey. 💙🚀
#OpenDoorToTheMoon #OpenArmy #DiamondPaws #LongTermOnly #StayCalmStayStrong #NotFinancialAdvice
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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不想说话 : If I buy warrants now, when the stock price reaches 30, can I still convert them into shares at the current price?
I thought only the warrants allocated to us could be converted.
On the first day of trading, Warrants surged 400%, and I didn’t dare to sell.
Xiaoya Chen OP 不想说话 : Yes, you can still convert them
It doesn’t matter whether the warrants were allocated to you for free or you bought them later in the market — they are all the same class of warrants, and they all have the same rights.
So if OPEN goes to $30 in the future, you can choose to exercise your warrants at the strike price (for example $9), or you can simply sell the warrants at the market price at that time.
The only important part is the expiration date — as long as you do it before November 20, 2026, the rights are the same for everyone.
Hope this helps!
(Not financial advice — just sharing my understanding!)
104262586（月饼） : It is early morning here. Good morning. Xiaoya, take good care of your health so that you have the energy to help more people.
fibrobro : You should also mention that if the stock doesn't hit the price, (like 13$) by next year, that warrant will expire worthless at zero dollars.
As much of a advantage it is to buy more shares at a cheaper price, it is much much safer buying open door shares. warrants will also go to 0 if not executed and sold before the expiry.
DO NOT HOLD AND FORGET ABOUT THEM. Otherwise, they will expire worthless. You HAVE to execute or sell them within a year.
不想说话 Xiaoya Chen OP : Thank you, Xiaoya. I understand now.
Xiaoya Chen OP fibrobro : Everyone has different views, and that’s totally fine.
Just to clarify — the expiry date for these warrants is November 6, 2026, not next year.
For people like me who believe in the company long-term but don’t have a lot of extra cash, warrants are actually a great option.
Of course owning the common shares is the best if someone can afford a lot — but being able to use around $2 to access the upside of Opendoor fits my situation much better.
There’s no investment without risk, so please don’t try to create fear here.
Anyone paying attention can clearly see your intention. Instead of worrying about my choices, maybe spend that energy thinking about how you’re going to handle your losses when OPEN goes up and squeezes your short position.
(Not financial advice — just my opinion.)
sea_bass : what is the difference between exercising warrants and selling warrants at market price? thank you so much for explaining each time!!
Xiaoya Chen OP sea_bass : There are basically two choices:
Selling the warrant
Exercising the warrant
You just sell it at the market price, like selling a normal stock.
You take the cash, and that’s it.
You pay the strike price (like $9 for OPEN W) and turn the warrant into a real OPEN share.
So you’re swapping the warrant for an actual stock.
Most people only exercise when the stock price is much higher than the strike price,
otherwise selling is usually simpler.
Hope that helps! (Not financial advice — just how I understand it!)
fibrobro Xiaoya Chen OP : I've been pretty transparent here. I've closed 90% of my short position already after earnings and I'm up 20k$. The remaining bit I have is just uncovered calls I sold that I'm waiting to expire.
Also, I play both sides. I sell both puts and calls. and buy shares to cover them if need be.
I'm just making sure that people are informed and don't forget how to use warrants.
Warrants are great. I'm sorry if my earlier post did not capture that. But it's something that you need to look at more closely.
if you buy stocks, you can buy it and forget about it. if you buy warrants, you need to keep checking every now and then. that's the only point I was trying to make.
For example, you didn't mention anything about early expirations. Opendoor can force redeem the warrants at certain prices. like if the stock trades above 12$ for 30 days.
You will get an notification of course, but you may be given 30 days to sell or execute, they will expire.
I hold very little position in Open Door right now, but I'm waiting to see where to jump in.
As of right now, I am just holding negative 10$ calls that expire in December.
I'm mostly in Zoom for this week (expiring Friday)
fibrobro : But to be clear, I'm not shorting the stock lol. unless you consider selling calls as a short.
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