Heads down 1.5% whilst options are up 5.9% at time of writing.
Is this an arbitrage oportunity? Should I sell my options at 18 and buy the heads at 35.5 efectively converting them for 17.5 cents?
Any idea what is going on?
Anyway, I still like the story so I will stick with the options for the leverage. Asuming the share appreciates in the new year, a 50% increase in the head price should equate to a 100% increase in the otions. As I bought the ptions for about half the head price at that time, I have twice as many options as I would have heads, thus the 50% head increase would give me a 200% equivalent profit. Not bad business!
Options can be risky ( I have had total losses on a number of occasions) but it is the leverage upside that I love. I was luky enough to ride the TOXO train to about $200,000 profit earlier this year. I will match that profit when the heads hit 133. We can but hope.
So now you can see how I have reverse engineered a price from my desired profit, can anybody make a more rational prediction for te future share value of a fully JORC'ed and proved up resorce company such as NWR?
I guess this will have been covered before when 'Lassiter's gold teeth' were first mentioned, so I may have a backward trawl through the old posts and see what gives.
A golden new year to all holders and let us look forward to massive CGT problems!
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- heads down. options up.
heads down. options up.
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