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03/01/18
12:44
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Originally posted by jj2
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Someone is super keen to get option holders to take them up.
Fact is the registry automatically send the option form along with your statement.
Also, the "talk" about option value is fluid.. as it depends on the value of the fully paids.. and I use the word value, loosely..
It depends on the price the fully paids are trading at.
If you want entry into any stock via the options and are prepared to go through the extra paperwork.. time taken and hold longer-term.. and like the current price - then buying and converting options works.
When the options have a long time until expiry (not the case here) it also makes sense to buy as the capital outlay would be less than buying the shares outright - remembering also that you have no rights as an option holder - to dividends or new issues should there be any.
Just some things to consider when looking at "options"..
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By and large you're right, but for a speculative stock, who would care about voting rights and 'dividends'? It's about leaverage and Arbitrage. Less outlay to expose bigger gain/loss; if one is lagging, then there's arbitrage value.