The underwitter doesnt know its commercial before he underwits the options. They wont release that info until after option expiry (convenient isnt it!).
"As such they have been selling stock, some their own and some borrowed from others (short selling), in order to effectively cash up anything over 30c to help pay for the options conversion?"
And you know this how???
""2. If the well is commercial, an underwitter (in whatever form), may actually view the options as attractive for themsleves...as such they have been selling stock, some their own and some borrowed from others (short selling), in order to effectively cash up anything over 30c to help pay for the options conversion?
Imagine being aware you are going to convert most of the options yourself...assuming you receive an average sale price of 50c, you only need to sell some 18m head shares...or if you received an averag of 40c, you need only sell 22m shares.
Your reward is some 29m options (or there abouts)...in the process increasing your position.
Also stinks...and also makes sense?""
No it doesnt its pure fantasy. Now you bought options around 8c i believe so are you making a good story to get some option action happening?
Perhaps some facts in this post would have helped it appear more genuine.
cheers
GDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
