re: daytrades september 06 afternoon, page-102

re: daytrades september 06 afternoon Can not believe someone just purchased NTUOB at 16 cents..

just for illustration purposes.. NTUOB are able to excerise their options at 16 cents (2 for 5 issue)

assuming you want to purchase 50,000 NTUOB

You would be able to conver 20 k for 16 cents (50000 x(2/5))

This would cost you $3,200 (20k x 0.16)(excerise) + $8000 (50k x 0.16) (purchase rights)

= $12,600 for 20000 of NTU

Now on market this would cost $8000 assuming you were buying NTU at its top 40 cents (20,000 heads * .40)

Absolutely ludacrris.. huge wave of profit taking expected to come imo - very dangerous territory to be touching NTU at these prices when you can prob buy on market in 5 days at aroung 25 cents.