Ann: MD's Company Update - June 2021, page-229

I’d say its three things.. one a matter of dollars.. the obs are close to expiry now so unless you absolutely have the coin to convert them you really wouldn’t buy them on market anymore.. so the closer to expiry the less tradeable they become.. so you’re left with OAs and OCs..

Two.. risk/reward factor.. the expiry on OCs are oct 2023 and are tradeable up until that point.. so those who may have a lower risk tolerance than others, and who don’t want to pay the heads price right now, can pick them up fairly cheaply and sit until they need to make the decision to convert or offset cgt on the lower pricepoint (5.8c close at time of this post).. but when the share price is sitting above 30ish odd cents (I really don’t think it’s an if..) before expiry, as an example right now you’d be paying a total 25.8c for whatever you picked up before close yesterday..

Three.. they are tradeable.. Some like to trade options, you can make good money out of options trading, as they generally follow the heads and they can be a risk buffer.. so taking the above example, if the heads are trading above 30ish odd cents the oppies are likely going to trade around that 18-20c region so the 5.8c paid means you can offload 13c profit.. without any further out of pocket for conversion..