Arbitrage opportunity

g’day all.
for those who hold both MGU and MGUO, if you watch carefully, there is an arbitrage opportunity sometimes. Volume not enough atm, but if you keep an eye on it, it may well work.
you just sell as many MGU at 0.18 and buy the same number of MGUO at 0.12. You convert the options at 0,05 and you make
0.01/ share risk free and end up with the same number of shares.
as I said, atm volume selling MGUO not enough to make it worthwhile (about $320 profit), but if more come on to sell, then I’d go for it.
I only hold oppies, or I’d be doing it myself.

ive seen this with other stocks that give options free sometimes when they have issues. Some decide to sell them for whatever they can get to lower their Ava eagle cost of the fpo’s. With time premium, MGUO should be trading at 0.04 less than MGU. Currently it’s 0.06 difference.

works at any price, as long as there is more than 0.05 difference on offer between the two.

cheers,

ned.