"If the oppies are bought at 30c and the trial fails... same...

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vintage

13,380 Posts.

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25/04/24

05:47

Post #: 73507674
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Originally posted by RYNZN ↑

Nothing is 'safe' with a negative result. You can bet the heads will drop more than 15c with a negative result which is near the entire value of the oppies.

if heads are 40c+ and trial fails, sub 10c will be the sp. Thats a 30c+ loss.

If the oppies are bought at 30c and the trial fails... same loss.

whatever price the heads and oppies trade at is irrelevant, as the sp with a fail pre mid next year will result in a MC sub $50m.

people feel the dxob value is 15c conversion price minus the heads sp. This is very wrong. The added buying power you have buying dxob at say 10c below the sp greatly multiplies your profit ghe higher the sp goes until 15c conversion is nearly irrelevant.

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"If the oppies are bought at 30c and the trial fails... same loss".

This will be correct ONLY if the number of oppies held is exactly the same as the heads.

But this will rarely be the case as most will buy oppies for the potential leverage and will therefore have invested as much in the oppies as they would have in the heads.

So they have greater upside due to the greater number of units but greater danger on the downside.

In your example, while both lose 30c per unit, the oppie holder is wiped out and the heads holder lives to fight another day.

Last edited by vintage: 25/04/24

DXB Price at posting: 33.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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