The secret explanation has a name code : 444It stands for this...

The secret explanation has a name code : 444

It stands for this 444 millions options gorilla sitting in the lounge, that everybody pretends to ignore.


When the share price hit 0,115, those who get their options at 0,02 will pay an exercise cost of 0,035 to have a total cost of 0,055/Share.

It means that you only have to sell 1 share at 0,115 to get 2 shares on exercise of your options + some cash for tax.

What would you do in this situation : keep your what you hold or sell some shares to double what you have sold ?

This is a very rare situation where good news means exercise, wich means price drop.

The MAY share price is virtualy capped until options expiracy on September 10.

In this very special stituation, the fact that the share price stay above 0,09 is extremely bullish.

It means that lots of people are taking advantage of "option cap" to accumulate at these levels.

The SP could even reach 0,15 because of this pressure.
There people will only have to sell 1 share to get 3 new shares from exercise.

Those holding only heads will be amply rewarded after september 10, imo.
The SP will be free to fly then.

At the same time, some uniformed punters could get burned alive with their options bought above 0,06.
Because those options value will rapidly drop as we are getting closer to expiracy.

Imo, they have until August 15 to get out safely (if they don't want/have the money to exercise).


One thing is still unclear for me : why did the management issued these options in july 30 2021 ?

From their July 13 update 21, they already had a good idea of the oil under their feet. Obviously, this was part of their financial strategy for Block 9.
- Did they wanted to have a steady flow of cash to pay for unexpected costs ?
- Did they wanted to cap the share price for months to buy back at low cost near expiracy ?
- Did they created a mountain of options to make an hostile takeover more difficult ?

Maybe some LTH with a better knowledge of MAY history could have an idea.


Something sure, some people are already making a fortune, at today's price.