participating in the SPP ?, page-160

JMHO

SP is currently at a 10% discount to the SPP, it's been possible to buy at 3.1 for a long time also or approx 6.5% discount to SPP. What I don't understand is why are people who are substantially in the red participating in a SPP that is at a premium to current prices and placing their bets on the extra options offsetting current losses when they are sold way way into the future?

Everyone is planning to do the same which will mean the options will not be priced well at all unless you watch it religiously and somehow sell during a time with little supply.

Simply put, I decided against it 1) the options are not attractive enough 2) XPE has significant risk still attached to it and a lot of unknowns, very speculative and 3) DILUTION, dilution dilution (an ugly word the market disdains).

More importantly, using the SPP + profit (or lack thereof) derived from option sales as a way to "average down" which is exactly what some who are trapped higher are doing, makes very little sense and is extremely risky and time consuming IMHO.

GL