options trading, page-3

Tarecq
Your comment:

"I don't think this will stop people from buying options if the stock goes to 30c+"

might be correct, but I tend to think this will depend on there being a predator or predators waiting in the wings.

Any potential predator will probably have to asssess how many of the shares Bhushan obtained in their takeover bid will come back into the market, assuming the new valuation is higher than the last one.

And even if all those shares came back onto the market, there is still the stumbling block of the 22% Bhushan had before the takeover bid - sufficient to prevent a predator getting complete control without Bhushan's acquiesence

A new higher valuation doesn't guarantee that the shares will trade at this price - just look back at the BWN trading range in Nov-Dec last year when we had a valuation of around 28 cents and Bhushan's subscription offer of 32 cents on the table.

I was wondering if Bhushan might come back with a new higher offer, but I think the rules preclude them coming back with a better offer for at least 6 months ?