Obviously, the higher the price moves for both, the smaller the difference between them...generally, if one cannot afford to convert, or simply choses not to, the idea is to convert the options at the highest possible price, thereby reducing the diferential between the two.
If well executed, one might manage to sell options during a spike, then by showing a little patience, shift the funds into the heads on the retrace for a similar price...it depends of course on the options strike price.
I actually managed to do this with NDO...selling some options in the mid to high 5's, then shifting the funds into the heads some weeks later at the same price (I think I actually achieved a lower average entry).
The trick is to know when a short-term top is in...but to do so at the highest possible price.
Never an easy choice.
Cheers!
CCI Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
