why is there a 2c gap ado/adoo, page-3

I admit to being completely flummoxed by the persistent lag between ADO heads and ADOO options.

That option-owners can convert now, given some days delay between posting ones conversion application and later getting the new ADO heads issued and registered, would well be disadvantageous if the heads price were to drop in the meantime, but what's the hurry in converting now, anyway?

If I decide to invest in Anteo for the long or medium term, why would I buy heads when I can buy options at a discount?


I'm a bumbling amateur in the options business, but it seems to me that the factors in choosing one over the other are:

* Buy an ADOO now for say 0.036, expecting to pay 0.012 in September. I run the risk of a 100% loss of my 0.036 if ADO heads drop to 0.012. Reasonably small risk, given ADOO is a long way in the money, and in any case it's virtually an identical risk with buying ADO heads. My 0.012 goes directly to the company, strengthening the capital base. Total cost of my ADO is 0.048, (one quarter of which is deferred 6 months).

or

* spend 0.051 now, and get one ADO.

For options a long way in the money, one typically pays a premium, yet ADOO have a discount??

So I'm obviously missing something. Anyone care to enlighten me? I would be most grateful.

Disclosure: I hold ADOO. Do not hold ADO.