8 million on open, page-222

Hi there, tell me about those AVLOs

so when strike price 2.0 is reached you have the right to BUY one share at 2.0c, so you have to pay 2c



what do you value AVLO at, if AVL is 2.5c ?, and why, could you have just bought that one share on market

I try calculate like this:

AVLO could be 1.5c by the time AVL is 2.5c

but its real intrinsic value is only .5c ( actual SP 2.5c less 2.0 Exercise price) - which will happen the closer expiry approaches i.e. Dec 18

so at these prices where I have to fork out 1.5c to buy one AVLO and another 2c to get the share, this is what one share really costs at that moment

ie SP is at 2.5 c

AVLO 1.5, get one share by exercising the option: pay 2.0 - total spend 3.5


so really I am 1c down here -

exercising options should not happen while expiry is not close - Is that correct ??

if it is correct, AVLOs are a mere trading tool to make more leveraged profits

that profit decreases, the higher AVLOs have risen in price

Let's say AVL 8c - AVLO ??? you could argue AVLO 6c, BUT only if expiry was rather close

what do you think folks ?