st there's no theoretical math impact to heads - EV increases with increased shares - but cash offsets it 1:1 at day of raise. So heads notionally represent same 'asset backing'.
there's a small devaluation of tails because it notionally harder for sp to then rise whilever the hard asset backing (ie resource) remains same.
ie cash doesnt increase with rising silver spot price for eg and gets burnt over time - so the asset base vs SoI is a heavier lift.
oppies are time sensitive so they lose some value - but IVR oppies are long dated enough i doubt you;d see panic liquidation. they have time for a silver price swinglow and swing higher were that to occur
but as you can see emotionally it resets the enthusiasm bar and so head and oppies usually derate - in a normal market.
but i wouldnt call current silver a normal market.
in a hot market its a relatively s/t blip - in some cases ive seen its no blip at all when market is hot enough
all depends on demand for the exposure
think silver price action over next week or so will probably determine
but if i look at the monster Sept silver future contract demand - i think silver may have a short term lull but be v strong into later aug/dec
and if US mints another $us1-3t in bailout funding- id say gold and silver will spike pretty hard
IVR Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
