An alternative approach with oppies, and something that I like to do, is (if you are still bullish at exercise date) to sell enough to raise the conversion $$ to exercise the rest.
Say you bought 200k CTPOA on market tomorrow at 4c for an outlay of $8k. At expiry next year CTP is 50c, and CTPOA is 25c (intrinsic value only). Sell 100k CTPOA and use the $25k to convert the other 100k into CTP.
You are left with 100k CTP for your original outlay of $8k (8c each) and have exposure to future increases if you remain bullish the stock.
A secondary but important aspect of this strategy is that only the CTPOA you sell will be subject to CGT as my understanding is that option exercise is not a CGT "event". This allows you to take advantage of the 50% tax break by keeping half for 12mths.
cosmos
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Last
5.5¢ |
Change
0.005(10.0%) |
Mkt cap ! $40.70M |
Open | High | Low | Value | Volume |
5.0¢ | 5.5¢ | 5.0¢ | $90.54K | 1.810M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 347403 | 5.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
5.5¢ | 449999 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 347403 | 0.050 |
1 | 200000 | 0.049 |
1 | 847077 | 0.048 |
2 | 410000 | 0.047 |
1 | 100000 | 0.046 |
Price($) | Vol. | No. |
---|---|---|
0.055 | 449999 | 1 |
0.058 | 172431 | 1 |
0.059 | 25000 | 1 |
0.060 | 210909 | 3 |
0.062 | 80000 | 1 |
Last trade - 16.10pm 02/08/2024 (20 minute delay) ? |
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