option expiry, page-8

Hi,
Unless some AVBBOB's holders forgot/were unaware the option expiry, all options would be converted due to the huge gap between exercise price and head.

IMHO, the fear of a big sell off, both before the option expiry date or after, does have its basis. After today’s 3B announcement of 26 million converted, there are still 70+ million of options to go in the next few days (will undoubtedly be converted). One thing is certain though, the sell before option expiry date (to get funding for exercising options) had been over. So we would only worry about those who exercise and sell back to realise profits.

But what size of the profit we are talking about here? Not simply paying at 1.5c then selling at 8-9c to make 5-6 baggers. During its lifetime, AVBOB options had often been changing hands from daily trading. As a consequence, the entry prices may have been quite high. To me, the large profit gap between 1.5c to 8-9c is just an illusion. I didn’t follow the AVBOB’s trading prices so can’t be certain. But the total investment costs for those may be close to the current SP or even higher. Based on that, the sell-off pressure after 30/4/2012 may not be that high as we though. Just my opinion only.