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31/07/17
12:05
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Originally posted by happyonlithium
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Okay: with respect.
What you can't predict is end price!
That is what makes the option valuable or not.
However, the time component means there is no pressure to sell them or convert them for almost 3 years.
If the Manono pegmatite pulls 2.0% Li2 O over 300m then 12c won't be far away.
Happy to see a 3c spread however: long haul makes no difference.
Maybe the 2c spread days are over but the mathematical fundamentals have not changed.
What you are not factoring in is if this is sold as well.
The 3c strike evaporates as you convert them just to get the money back.
So the point I'm making is that their value will be decided when they are sold, converted or when it's company is sold: then the maths will tell you.
I'm here for the same reasons as you.
;P
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I'm with you happy. At moment options 3.2 spread. Crazy cheap. I think the spread should be 2.2 to 2.5 given the increase in price. I am still buying at this price.