Selling heads to cover the option exercise price also manages risk for the company.
If say I exercise $100k of options, sell $100k at a 100% premium. I retain $100k of heads and regain $100k capital. So yeah, I have hedged my bets in that respect.
However, that's $100k of capital I can set aside for additional cap raises or options exercising (if I still have options to exercise). If the company needs additional capital, I have it ready to go. It's not easy to raise capital at the moment. Better to have cashed up board members who can tip in money if needed.
Selling heads to cover the option exercise price also manages...
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Last
7.5¢ |
Change
-0.003(3.85%) |
Mkt cap ! $132.2M | |||
| Open | High | Low | Value | Volume |
| 7.8¢ | 7.8¢ | 7.5¢ | $64.96K | 854.7K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 14 | 1196458 | 7.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 7.6¢ | 82143 | 3 |
View Market Depth
| Last trade - 16.10pm 21/05/2024 (20 minute delay) ? |
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Last
7.5¢ |
Change
-0.003 ( 1.32 %) |
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| Open | High | Low | Volume | ||
| 7.7¢ | 7.7¢ | 7.5¢ | 633167 | ||
| Last updated 15.57pm 21/05/2024 ? | |||||
| 4DS (ASX) Chart |