options and chart

There is clearly someone buying the options in this stock and then converting them - on a regular basis (eg see tonight's after hrs announcement).

One can only speculate as to why anyone would want to exercise options with more than 2 years to run.

The most plausible possibility is that an institution is behind the buying and, for one reason or another, it is choosing to exercise before adding them to its holding of fully paids. I believe some overseas funds are not allowed to hold options but don't quote me on this.

I see two positive signals to come out of this.
The first is obviously that there is a serious accumulator currently active who is patiently soaking up all 'loose' stock (in both the options and the heads) while cautiously doing their best to not force the price up ... the company is afterall fairly tightly held.
The second signal, is of course that the supply of options is gradually drying up.

For option holders this is clearly positive as it increases the chances of the oppies trading at least on par or even at a premium to the fully paids.

Finally a comment on the chart. As other posters have already mentioned, it now really looks promising. Yesterday we got a breakout through the resistance line of a 'pennant' and today, despite a weak resource and broader market, the breakout has been confirmed. The technical indicators are suggesting this breakout has enough 'energy' to see the share price propelled higher in the short term.

All we need now is for the rest of the market to behave itself.... otherwise it looks like not much else is going to stops this stock's advance in the short term.