$Ondas(ONDS.US)

I noticed some people are wondering why $Ondas(ONDS.US) barely moved when there's good news recently (like the $20 million purchase order today).

⬇️Here's a simple breakdown:

Large institutions bought a lot of $Ondas(ONDS.US) stock through two high-price deals:

• $425 million, around $11.50 per share (stock + 2 $20 warrants)

• $1 billion, around $16.45 per share (stock + 2 $28 warrants)

They paid extra for each package: real stock + long-term warrants (similar to call options).

To protect their principal, they hedged the warrants by shorting the stock. This maintains a neutral strategy, but it also means they'll sell when the stock price rises.

Current price is around $10-11:

• Their shorts are printing money

• The warrants still have time value (2032-2033)

Therefore, they're happy to profit from the hedge now, rather than waiting for the price to go above $20/$28.

❌So, how/when does it stop?

Don't forget they also hold those quality shares! So once $Ondas(ONDS.US) climbs to around $16 or higher (the entry point for the bigger deal), their entire position can be profitable just from those shares.

This means they don't have much reason to rush to sell shares in response to market fluctuations. They might relax the hedging, close out the short positions, and let the market run.

✅Conclusion: These hedges act like a protective blanket, preventing upside until a massive catalyst (a $50-100 million contract, strong earnings, etc.) triggers unstoppable buying that overwhelms selling.

Retail frustration is understandable, but this is a typical warrant overhang situation. Not hopeless forever, just needs bigger good news and a favorable market environment! 💥