With the SEC contact email and an OpenAI key set, Scalpel reads each company's recent financing filings for the prices where new sellers can appear, and draws them on the chart as orange dashed lines labelled on the right: Warrants 2.10 (3.2M) where warrant holders can cash in, Offering 1.85 where the last offering's buyers may sell, and Converts 0.90 where note holders can convert and sell. Switch them per chart with Warrant and offering lines in the chart's cog.
When a small cap sells stock, it often sells warrants with it, or borrows on notes that convert into stock. Each of those has a price, and at that price somebody who did not buy on the open market can suddenly make money by selling to you. A run toward a warrant strike tends to meet a wall. These lines put those prices on your chart, read straight from the filings, so you can see them before price gets there.
Before you start
Intel on with the SEC contact email set, and an OpenAI key with Extract filing terms ticked (guide 9.1).
A warrant exercise price, with the shares behind it
Above it, holders can buy new shares at 3.75 and sell them at the market. Expect selling into a run through it
Offering 2.60 (2.0M)
The price per share of a recent offering, with its size
Those buyers may sell to get out at even or a profit, so it can cap a bounce or, from above, attract sellers on a dip back to it
Converts 0.90
A convertible note's conversion price
Note holders can turn debt into stock at 0.90 and sell. A conversion price far below the market is a standing seller
CHART
10s1m5m1h1d
Above VWAP2 red bars
BuyShares v$318100 sh$795250 sh$1.6k500 sh$3.2k1000 sh
Offset-10c+
SellFull1/21/41/2 Ask1/2 MidB/ETrail
Offset-10c+
EFGH's 1 minute chart with the last offering at 2.60 under the price and warrants at 3.75 above it, both for 2.0M shares. Demo data.
The lines are orange, apart from the stop red, take-profit green and VWAP yellow, and dashed so they never read as one of your own levels. Their labels sit at the right edge: the left edge belongs to your position's pills. A level only shows when it is inside the chart's price range, so a warrant strike far above the price appears as the stock approaches it, or when you zoom out.
How Scalpel finds the prices
The filings. For each company it watches, Scalpel takes up to six financing filings from the last 12 months: 424B prospectuses, S-1 registrations and 8-Ks that report a sale of stock.
The excerpt. It downloads each filing's main document from SEC EDGAR and cuts out the passages about the deal terms.
The extraction. OpenAI is asked to report only the offering prices, warrant exercise prices and conversion prices that the text states, with the share counts behind them, and never to compute or guess.
The checks. Pre-funded warrants (with a token exercise price of a cent or so) are skipped, since they are not a price level. Any level more than 20 times away from the current price is dropped as a misread.
The cache. Each filing is read once and kept for good, so the cost is a one-off. A failed read is retried after a day.
New filings are read as they arrive, so a fresh offering's price usually appears on the chart within a minute or two of the filing.
Lines and the dilution verdict
The same prices feed the dilution read. A warrant or conversion price at, below, or within 10% above the current price makes the verdict Severe, shown as a red Warrants near chip when there is no fresher filing to show. Hover the dilution chip to see each level in words, for example "Warrants at 3.75 (2.0M shares): holders may sell there".
Turn them on or off
The lines are on by default. To switch them for a chart, open the chart's cog and tick or untick Warrant and offering lines.
Chart settings
Default timeframe1m EMA overlays (9 / 20)MACD sub-paneDelta sub-pane (10s, 1m, 5m)VWAP lineVolume histogramRound-dollar levelsWarrant and offering linesPrice gridlinesLast-price tag...
Chart settings, with Warrant and offering lines outlined.
How far to trust them
They are prices, not promises. Warrant holders do not have to exercise at the strike, and offering buyers may hold. The line marks where selling becomes possible, not where it will happen.
Read the terms behind them. A filing can describe warrants that were later repriced, or an offering only partly sold. Hover the dilution chip, and check the filing on SEC EDGAR when it matters.
The extraction can miss. The model reports only numbers the text states; if a filing words its terms unusually, a level can be missing. No line does not prove no warrants.
Questions
Why are there no warrant lines on my chart?
Lines need intel on, the SEC contact email, an OpenAI key with Extract filing terms ticked, and Warrant and offering lines on in the chart's cog. The company also needs a financing filing with stated prices in the last 12 months, and the level must be inside the chart's price range.
What is a warrant exercise price?
The price at which a warrant holder can buy a new share from the company. Above it, they can exercise and sell at the market for a profit, which adds supply.
Does reading filings cost much?
Each financing filing is read once by OpenAI and cached for good, so the cost is small and one-off. Headline grading is the daily cost, a few cents.
Why is the offering line below the price?
It marks where the last offering's buyers got their shares. If the stock dips back to it, they may sell to get out at even, and above it they may sell into strength to take profit.