Because I believe the SP will be far above $4.25 before the...

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Davisite

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24/04/24

16:41

Post #: 73502084
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Originally posted by Hunterr ↑

Hello, I have asked this question awhile ago. Maybe you did not read it because I did not get a response or maybe you don't want to answer it which is fine.
But what is the reasoning of buying $4.25 options ?
When you can buy on market and acquire so much more today's price, you will have 10,000 extra shares for every transaction and when we were trading around $.70, you're around $20,000 Extra shares Monthly better off.
Today's prime example if you use your money $20,000 worth. We won't be sitting on $1.29. We could of closed at $1.44 so I don't understand the reasoning for it. Yes it's it's a good example and confidence and yes the money goes into RAC account,
But just still does not make sense to me to do it this way. Is there any reasoning besides what I just said?
Seems like Robin Peter to pay Paul scenario you are better off purchasing on market and therefore the share price rising

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Because I believe the SP will be far above $4.25 before the options expire. By taking half my salary in options I am able to effective buy a Race share now for 19c (i.e the BS value of the options back in November).

If I am right then I will end up with around 3 million more Race shares than I would have if I had just put half my salary into buying extra shares on market.

I am a big believer in revealed preferences. Don't believe what someone tells you, believe what their actions reveal.

RAC Price at posting: $1.29 Sentiment: Buy Disclosure: Held
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Last $1.74		Change 0.035(2.06%)		Mkt cap ! $289.5M

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