The CR was at 0.009, so the people who invested in the CR are unlikely to be sellers at 0.007/8, at least I'm not.
I just figure, if you have a longer term view on the SP such that you want to play in the options space, then for a marginal upfront price difference it makes more sense to buy heads at the moment.
It's a bit different for those who got the SPXOA as a free attaching option in the CR as it is a pure leverage play, for example:
at .02 SP - can sell sufficient heads to recoup CR outlay, exercise oppies & then be free carried on balance of shares at a net 39% reduction in holdings (from what was acquired in the CR).
at .03 SP - can sell sufficient heads to recoup CR outlay, exercise oppies & then be free carried on balance of shares at a net 9% reduction in holdings.
at .05 SP - can sell sufficient heads to recoup CR outlay, exercise oppies & then be free carried on balance of shares at a net 15% increase in holdings.
at .07 SP - can sell sufficient heads to recoup CR outlay, exercise oppies & then be free carried on balance of shares at a net 25% increase in holdings.
SPX Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
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