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re: Special Purpose Acquisition Company (SPAC) Discussion

Posted on 2/19/21 at 3:11 pm to
Posted by Palm Beach Tiger
Orlando, Florida
Member since Jan 2007
29872 posts
Posted on 2/19/21 at 3:11 pm to
A few questions on spacs. So far I have been playing the close to nav strategy. Just on a basic robin hood account. But I am interested in buying the units pre split (on fidelity). Basically when you buy a unit you get the common plus half a warrant when it splits right? I am assuming you cant use margin like on commons, so would this be a good play for a roth ira Thanks in advance.
Posted by LSUregit
Member since Dec 2013
1620 posts
Posted on 2/19/21 at 5:06 pm to
Yes, NAV strategy can be done in your ROTH. It's a "safer" method for those with low risk tolerance but still want potentially high reward. Some units have whole, 1/2, 1/4, 1/5, etc. warrants attached when split. I believe it is free to split units with Fidelity.
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