what a joke, page-4

I'm perplexed by the extent of the discount on the options too, and not just today. Last night's close on AIM suggests an options price of 15.5c so if you've got some cash to trade with it seems a opportunity going begging. I'm happy to have picked up another 500k at 11.5c yesterday.

Possible reasons for the extent of the discount:

- RRS volumes this week are miniscule compared to RRL suggesting that the action truly has moved to London where they don't have ready access to RRSO

- poor liquidity in RRSO (and RRS to a lesser extent)

- easier for AIM market makers to transfer RRS so demand for RRSO is relatively muted (though at this level of discount to AIM I'm surprised they're not taking up RRSO)

- the CGT discount won't apply to new acquisitions of RRSO

- new investors maybe unaware of the options or exercise terms


Not sure what other factors might be relevant but I don't believe there's expectation of a pullback on RRS yet - AIM volumes are too high to indicate such.

In the meantime I'm not concerned at the discount. Even if it continues the options afford leverage sufficient to justify the investment vis-a-vis RRS at these prices.