Hi AustinNZ, I'm sorry to disagree with your post but...
Friday's CTP close was 13.5c so $10,000 would buy 74,074 shares.
Fridays close for CTPO was 7.9c so $10,000 would buy 126,582 options.
Let's say the CTP SP went to $1 before expiry of CTPO's in 2014.
To sell them then...
CTP would equate to $74,074.
CTPO would equate to $126,582 - 126,582 x 16c (exercise price) = $106,329. Ie: $126,582 - $20,253 to exercise them.
The above shows just over a 43.5% increase in profits for CTPO over CTP. CTPO profit thereafter increases exponentially as the CTP SP increases so unlike you propose the options actually become more attractive as the SP increases...certainly not less attractive.
Disclaimer...$1 price was an example not a prediction or ramp of any type.
CTP Price at posting:
12.8¢ Sentiment: Hold Disclosure: Held
