WLE 0.40% $1.27 wam leaders limited

Ann: Appendix 3B - Exercise of Options, page-15

  1. 2,919 Posts.
    lightbulb Created with Sketch. 1097
    Some serious action on the options happening

    Price is rock bottom at $0.001 - $0.002 with some huge orders (10-20m options) at $0.001

    Wonder who this is at this price?

    You would think someone with deep pockets could:
    - snap up the options at ~$0.002
    - buy the share at $1.10
    - collect the dividend at $0.02 (immediate profit on the options)
    - wait for share price to match NTA (currently ~5-6c discount on that)
    - trick is the funding cost on the $1.10 needs to be less than the appreciation in the price (arguably it should recover in 2-3mths at most and should like WAM, appreciate more than the 5-6% discount)

    Key issue is the deep pockets and time needed for share price to recover to at least NTA
 
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