Options End Game, page-50

I really just do not understand why anyone with size in these options would want to convert them anyhow.

There are numerous people on this forum that have spoken about owning all these options from 1 cent and well over 12 months.

So looking at the numbers, is you had a million options at 1 cent your investment was $10k. If you choose to exercise them it will cost about $95k (9.5 cent option exercise ).

So an investment that even today is worth about 60 cents per option, not forgetting you have turned $10k into $600k (personally I don't know what people want if this isn't good enough), by exercising you are now increasing your capital exposure by almost 10 times for no immediate benefit and if you hold the securities in your own personal name you have now given up the 50% CGT discount and by doing so have really committed to holding the stock for another 12 months to get back that CGT discount??

Not to mention these options have traded at $1 !

I wonder how many people on this forum would go into a Casino and put $10k on one number (that would only give you 35 to one) or put $10,000 on a horse at 60 to 1 odds.

I wouldn't think that many. Anyways all IMO but sometimes I think it is worth taking a step back and realise what some of these numbers actually really mean.

In saying that I would like to be in this predicament! If you are good on you.