KRROC, page-4

Interesting first couple of days of trading on the options, 1c, at this time, the traders are having a good time and easy to see that the options stripping after the SPP has been effective hence the sell down in heads to so extent.

For the traders they are something to play with, for investors, in my opinion, plenty of red flags at the moment.

There maybe some on these threads who are not that familiar with options and how they work, they look very cheap at 1c but if you were planning to convert them in the future, they are very expensive at the moment.

Lets say you buy them for 1c but when you add on the 6c conversion price the shares are effectively cost 7c, BUT the heads are on 3.5c if you had funds to purchase today, so you would be paying double for KRR after converting the options, in this case the options are leading the heads.

The idea situation, if you were an investor and wanted to increase your holdings, would be to purchase the options when the heads were leading the options ie heads (KRR) at say 8c and KRROC at say 1c, if you had funds at that time. Timing is critical when purchasing options to convert to heads as the leverage changes as the prices move.

If you got some free KRROC in the SPP you are sitting on a tidy profit, $15,000 got you 227,372 KRROC @ 1c = $2,273.72 profit for effectively nothing.

Remember the traders will not care about the relationship between KRR/KRROC too much, on no news as they are interested in the trade, on news of the 99.99% HPA confirmation, PFS or gold results the relationships will be quite dynamic.

It is important to remember what type of KRR investor you are and keep your thinking clear on the options prices.

Just my thoughts.

Rayda