Ok, let’s look at the two scenarios side by side….
1. I sell 65,000 shares, that I bought in the spp, for 24c. I now only have 170,000 shares, currently worth $12,580 and $7,800 profit. My free options lapse worthless.
2. I convert 65,000 options for 14c, and sell the same amount of fpo’s for 24c. I now have my original 235,000 shares, currently worth $17,390 and $6,500 profit.
I’m still $3,300 dollars better off in scenario 2.
Given that I was comfortable with the amount I had invested at the time, wasn’t looking for more exposure to IVZ (especially because of the highly speculative nature of wildcat drilling/results due) and was in fact looking to take some profits off the table, converting the options and more or less selling them straight away was 100% the right decision in that exact moment, particularly as I didn’t have the benefit of hindsight. The other upside to this scenario that gets overlooked is that company has funds added to their bank account.
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