IBXOA arbitrage, page-15

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mbizi

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23/09/20

14:56

Post #: 47568927
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Originally posted by SCPS2: ↑

Yes and no.

If IBX is currently trading at 6c then it's guaranteed you can now buy one share for 6c
If IBXOA are currently trading at 3c and its can be exercised at a later date for another 3c then your total cost for one share is also 6c

So its more a question on your financial position now compared to your financial position between now and 2023 when the options expire.

Do you have (for example) $30,000 now to buy yourself 500k shares of IBX
or
Do you only have $15,000 now to buy yourself 500k IBXOA options. Then save another $15,000 to exercise those options to heads (IBX shares) before they expire.

I personally hold both. Because I wanted a decent hand full of shares and got in early. But when the price spiked and I wanted more I couldn't afford a substantial amount at the time.
So for this reason I bought IBXOA options for half the price of the heads. This gives me 2 years to save up the balance to then convert them.

To sum it up, its a matter of capital. If you have the capital now to buy the shares (heads) buy them.
If you want A LOT of shares in the future, buy a lot of options, save up more money then convert them later.

Options do come with risk though, which you may also need to consider.
IBXOA don't have much risk now though, IBXO you could argue have some small risk because their exercise price is 6c next year.

Expand

What is the difference between IBXO and IBXOA.

Please assist?

IBX Price at posting: 7.6¢ Sentiment: Buy Disclosure: Not Held
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(20min delay)
Last 5.4¢		Change 0.000(0.00%)		Mkt cap ! $2.213M

Open	High	Low	Value	Volume
6.0¢	6.0¢	5.4¢	$5.443K	93.82K

Buyers (Bids)

No.	Vol.	Price($)
2	23636	5.4¢

Sellers (Offers)

Price($)	Vol.	No.
5.5¢	51042	1

View Market Depth

No.	Vol.	Price($)
2	23636	0.054
4	119215	0.052
3	210000	0.050
2	40408	0.049
3	43835	0.048

Price($)	Vol.	No.
0.055	51042	1
0.060	134999	3
0.062	45000	1
0.063	38873	1
0.070	27131	2

Last trade - 15.59pm 31/10/2024 (20 minute delay)

IBX (ASX) Chart

IBXOA arbitrage, page-15

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IBXOA arbitrage, page-15

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