With the caveat that if the shares go above 75c on market you would be wise to sell the number you have as options and then immediately take up the options because you end up with options that have a much longer expiry.
I have avoided HC for some time as it's very hard to see motives and real information in times like this. None of us, I assume, lived through the Spanish Flu so we have no idea what to expect. Then governments have behaved very differently from GFC as well - I have no idea what the financial impacts are or where they will surface. I suspect that the banks had a difficult time in releasing their results so they took the pathway that is easiest - Provision against everything you can think of, then take a COVID 19 provision as well.
Really I am not sure what the options really mean but the idea that the director bought 50000 shares based upon the benefit of what is 10000 options at 75c is just plain wrong. I think his actions showed you where the money is - he bought the shares as that is now and it's at a substantial discount to NAV/NTA whatever. What I could not believe was that someone exercised the options even though they are clearly still out of the money.
Really the options ( my opinion) sought to confer a benefit for those that are long term holders but really we will only take those up if the share price exceeds 75c. So if the share gets up there then it's of value - it will also depress the growth in NTA look at MA1 and the confusing expiry of their options. In the end, it just looked like they were not exercised. However its only 20% of the shares.
GC1 Price at posting:
66.5¢ Sentiment: None Disclosure: Held
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