I guess this is why retail is classified uniformed capital.
RHYAH are 20c options with an expiration of 14 September 2024. That is, the right but not the obligation to purchase shares in RHY at 20c ON or BEFORE 14th Sept 2023. That is you convert the options into shares at 20c, the underlying market price when you exercise the options has no effect on the option. The recent spike would have given him a good SELL price after they were issued at 20c.
As of 18th Jan, he held 1,750,000 RHYAH directly and 875,000 Indirectly, which when exercised costs $525,000 Now given they don’t expire for c4 months, @ a RF rate of let’s say his mortgage 5.5% is an opportunity cost of capital of $9,625 of carry value on those options. Usually you only early exercise if you want out AND think there’s zero upside to the underlying. Otherwise you free carry till exp and exercise then.
RHY Price at posting:
44.0¢ Sentiment: None Disclosure: Not Held
