ctpoa, page-6

Johnno8,

It would be a lot easier to read your posts if you used capitalisation and paragraphs. At the moment it reads to me like everything is said in one breath.

If I have understood your argument, you are talking about selling the options at a later point, I was talking about exercising them.

Now, if as you suggest that the SP gets to 50c before CTPOA expires then yes, CTPOA would be worth ~25c (depending on how close it is to expiry). So if you buy at 3.5 and sell for 25c then that's about 6x profit (ie, 7x your purchase price).

The risk, of course, is that CTP might not reach the exercise price (25c) before CTPOA expire. You would still own shares if you bought them, but you might not be able to get rid of the options (depending on how long you waited).

- Karl