valuation and background, page-18

The oppies - well, I actually thought that they were too high at 12 cents when the FPO's were 27. I sold mine at 11 last run, you can see this trade take place in earlier commentary on the KEY thread - bought at 4.3 (back then).

Clearly the way KEYO closed today would indicate to me that the market saw them as fair value at 6.4, maybe on the light side, but only a tad - could have run to 7 easily today, but no worries. Tomorrow/in the week, assuming the FPO hits 26/27 (which is where I am guessing you will see this sooner rather than later), KEYO should run to 8.5/9 IMO. I would probably look for guidance in the FPO before putting hard earned into the options. If you see that clearly the heads are moving into 30 territory, options will bring substantial gain, they are cheap and chances are they will end up in the money prior to expiry in any case. Right now - just early days, taking a position in KEYO in 5's or 6's is fair value. If KEY runs hard, it really won't matter about anything in KEYO below 10 cents will it?

As for the issue of props. I can assure you that I was also a large buyer and a seller today in the FPO's. I put and pulled bids all day. Right now, I have orders every where and these may or may not stay, depending on how I read the run, volume, progression of trade etc... I lost an old friend today to cancer, making money is just a game... enjoy it...

IPOD