I’m long term investing but in a previous life loved trading...

I’m long term investing but in a previous life loved trading options on big liquid companies eg. Banks, Qantas, Woodside etc. (in fact Woodside was such a beautiful trend to trade, it was like clockwork).

There are a couple of other variables with options.

Time decay is significant. The closer the share price gets to the strike price and the closer to the expiry date, the more volatile the price movement. There can be significant difference in the ‘obvious’ fair value.

Personally, I don’t think there will be too much trading on the oppies while there is very little liquidity as it is just too big a risk, but holding a decent swag at this cheap price gives people the option (pun intended) of converting later. Remembering that if you hold 500,000 oppies, you’ll need $100,000 to convert but it’ll only cost $20,000 to earn the privilege to see.

2022 is a long way away and I’m very happy to hold my parcel of oppies until maturity. The next 18 months look promising for this investment and I fully believe that stage 2 will be advancing this year to prove up the business model that management have put in place. Roadblocks are being removed every day and the next few months are exciting and critical in the development of this company.