exercise price, page-12

my point is simple, and some understood it, others didn't.

If the heads only go to 30c, the oppies with follow to 15c.

If the heads go to 60c the oppies will follow to 30c.

But right now, there is a gap to buy 2.5 for 1.

They will track on the same ratio, as perceived leverage will alwys discout the oppies by 50%, until it gets to the exercise price, and then the exercise lag will kick in.


I'll make this simple.

right now buy head at 16c. or buy oppies 6c
and evident that oppies win every time.

Heads move to 20c (1.25x), oppies move to 10c (1.67x).

Heads move to 50c (3.1x) , oppies move to 25c (4.2x)

Head move to 1.00 (6.25x) oppies move to 50c (8.3x)

Heads move to 2.00 (12.5x) oppies move to 1.00 (16.7x)

Heads move to 3.00 (18.75x) oppies move to 2.00 (33.3x)

heads move to 4.00 (25x) oppies move to 3 (50x)

heads move to 5.00 (31x) oppies move to 4 (67x)


So, for the next 2 years of 2.5 years the ride on the oppies offers better margin, and if things look dicey, at the 2 year point, sell, and switch the dollars to heads.

Get it?

cheers