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gassed

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18/09/24

09:11

Post #: 75719756
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Originally posted by gassed: ↑

Brilliant peterlip. My position on options is the early bird factor. They can also be used as a hedge, but, the percentage returns, at a much earlier stage, also makes them an interim trading stock in their own right. e.g. If the market sentiment starts to improve and the SP of the share starts to move up, say to .030, the sentiiment for the options "usually" follows. So in that case from .019/.020. the rise would be 50%. But, the options can go to .010, and there you have a 25% trade, and possibility to sell some and put into the shares with the profit. And that can continue right up the chain IF the sentiment for the shares continues. You can definitely end up with a bag full of shares that only cost you the initial cost of the option, and you also eliminate the date risk factor as you have used up your stock of options when selling them along the way to buy the shares!!! It DOES happen!!

From what I've seen with Unith, this could be a classic win/win for traders, AND mainly for UNITH investors who want to trade and continue to accumulate the shares that are bought from the profits generated from the options. And the lower the entry price the greater chance that that process can have near outstanding results. NOW is that time!!!
And not just @ .008, think 19 months ahread, you don't have to relate them to today's share price vis a vis the exercise price!! The exercise price becomes completely irrelevant in the decision, it's what YOU reckon the SP will be going forward, starting from now, but, also thinking 18 months ahead. The 600K buy yesterday looks like someone (not me, I picked up the 100K top up after seeing that buy) who might be using that process and needing a good quantity to work with, and will probably end up with no options and a full new lot of nearly free shares.
It does work with the right stock and at the right entry price. It can be your "dry powder" to use those profits in any way that you choose. BUT, it's not a process that can be put in the bottom drawer, you have to work them for the max benefit and the lowest risk, that risk being 31 March 2026, and probably 6 months before that, depending where the share price is, as we are seeing with the UNTOGs now. But it's not for the lazy punter, you have to be alert and positive and always with your eyes on 31 March 2026.

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Using that 600K Buy @ .008 yesterday as an example. I have no idea of what the actual buyer has in mind. But, it's real.
And it possibly also included an options trader putting that 600K for sale. They possibly bought a million, or more, at the start @ .004. They've paid $4,000 for that million. Yesterday, they sold 600K of them for $4,800. They have paid for ALL of their original million and STILL have 400K left, worth $3,200, that have cost them zero!! PLUS $800. That's $4,000 (or more!!) that they can now use to buy UNT shares and end up with 200,000 (or more!!) free UNT shares. Nothing to do with 31 March 2026 OR the .030 exercise price. Totally independent trade decision. Sure, the market is still very relevant, they will NEED the sentiment for UNT to continue, to enable them to sell that remaining 200K UNTOAs, but, that would have been included in their initial decision to embark on implementing their plan. Horses for courses.

Last edited by gassed: 18/09/24

UNT Price at posting: 1.9¢ Sentiment: Buy Disclosure: Held
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