Noone will be converting option while evr the OPTIONS price is less than 2c from the SHARE.
IE, They buy the OPTION for 4.4 cents and it cost 2 cents to convert which equals 6.4cents for the SHARE after conversion from an option.
Why do that when the share is 6.2cents?
So i think someone who is clever is keeping the optinos price out of the money inthis way, so that if any OPTIONS converting is going to be done, then it will only be done in hand with a SHAREprice hike. And the person/s commanding the price balance between OPTION and SHARE would be doing this as a hedge on a few levels (hedge against one price falling in a day -daytrader, hedging/working against Intersuisse controlling options conversion ratio (a broker possibly) and 3rdly it would be a possible industrial competitors influence.
All of this keeps the share steady and sideways until an annoucement offers guidence and i feel only when the options lift will the shares, for the above reason i mentioned - to keep the money margin fluctuating to make it harder for people like Intersuisse to manipulate. So far it has worked a treat, because i dont think IUntersuisse has even converted 2 million shares yet. Therfore on days like 20million-90million turnover, we know its not Intersuisse who is responsible (see latyest announcement revealing how many shares Inter have executed thus far.
Cheers
Lautrec
ESI Price at posting:
6.3¢ Sentiment: None Disclosure: Held
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