hegob, page-10

hi gonesolow,

I'm really only here for a giggle at the name so I don't know much about the underlying so I don't know what it's prospects are for rise.

As someone said earlier, it's an all or nothing play. It's close to the strike price and this close to expiry the time value is almost nothing so it's a very high leverage play.

There's obviously some resistance at 23-24c that would have to be broken. Having said that though if it's does break it there's good reason to expect the options would be at least a few cents in the money which represents multiple 100% gains.

If I was going to try and play I would work out how much I was willing to lose on the trade (as you should with every trade before you enter) and buy no more than that value worth of options, if they expire out of the money it's a loser. If not possibly a big winner.

Now all that said when an option is about to an expire and the heads are this close to exercise price it's not unusual for the company to use one method or another give the price a good nudge past the exercise price in order to encourage exercise. They get more money in the kitty and they don't have to worry about annoying things like shareholder approval for issuing extra shares.

If they have a good broker in their camp it could be an on market pump, if they have some good news up their sleeve they've been holding back they might drop it on the market at the opportune time...

assuming the fundamentals are reasonable overall I'd say it's probably a good punt at 1c, but only with money you're prepared to lose. And be aware when you get to within 2-3 weeks of expiry they will become hard to sell because only buyers who intend to exercise will be on the bid and they'll only bother with the hassle of buying options then exercising if they can do so at a discount (i.e. time value will actually become negative). So it's worth ensuring you have the backing capital to convert if you hold them too close to the deadline...