Why would a fund pay full price for something that they could just buy on market? It's a discount to make it attractive to them, similar to when companies do a SPP. They offer a discount to entice. Paladin the other day sold their holding in Lotus for a 10% discount to a fund. Why didn't they try sell on market? They knew they would drive the price down further.
If they exercised the options and then try sell a 6% position on market they are going to drive the price down and realise smaller gains.
If they were concerned about fees (which is doubtful) selling an option with a $6 intrinsic value is cheaper than selling on the market at $9 for example.
The point I'm trying to get across is that if they didn't want the position, they would have already sold it.
Why would a fund pay full price for something that they could...
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Last
68.0¢ |
Change
0.015(2.26%) |
Mkt cap ! $225.3M | |||
| Open | High | Low | Value | Volume |
| 66.0¢ | 68.0¢ | 65.0¢ | $320.0K | 483.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 6026 | 65.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 68.5¢ | 157558 | 3 |
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| Last trade - 16.10pm 03/10/2024 (20 minute delay) ? |
| PBH (ASX) Chart |