ISPOW - Inspirato: Warrant Price Suggests An Impending Collapse On The Stock

• ISPO closed Friday at $42.48 and ISPOW closed at $3.60. The warrants have a strike price of $11.50. This means they are trading at $27.38 below their intrinsic value.
• Arbitrage can't yet be acted on until the warrants are exercisable, which is 30 days after the deal closed - March 15th.
• I expect the stock to decline heavily to less than $20 and the warrants increase slightly as the arbitrage gap quickly closes after this date.
• If you must have a position in ISPO, consider buying the warrants, not the stock.
• I have a small warrant position that I intend to sell once the arbitrage opportunity dissipates.

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