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5.0¢ lucapa diamond company limited

Worth considering that options deep in the money can sometimes...

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Stone Pony

1,419 Posts.

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10/02/16

21:04

Post #: 16989810
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Originally posted by PointyD ↑

Hi Zippy, agree with most of what you said but when you said "This is another strong incentive not to sell your LOMOB options and to exercise them", you needed to qualify that by also saying if you intend to hold your shares for 12 months. The reason I say this will be obv to most, but if the share price is 40c and the oppies are at ten cents, you will gain nothing of benefit by exercising an oppie and then selling the head. ie selling an oppie for 10c or converting an oppie and then selling the head for a 10c profit will both invoke full CGT. If you convert your oppie and hold the head for 12 Months you will only incur 50% CGT.

That being said, conversion is most definitely the way to go if you are staying in for the long haul.

All IMO. Please consult an accountant for your advice.

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Worth considering that options deep in the money can sometimes trade at a discount.
For example, LOM may hit 90 cents but the lomo may trade < 60 cents. Simply reflecting supply and demand and the time and money required to execise and sell.

Hopefullly we may see a real live experiment in the next few trading days.

LOM Price at posting: 32.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 5.0¢		Change 0.000(0.00%)		Mkt cap ! $14.50M

Open	High	Low	Value	Volume
5.0¢	5.0¢	5.0¢	$9.609K	192.1K

Buyers (Bids)

No.	Vol.	Price($)
1	70000	4.9¢

Sellers (Offers)

Price($)	Vol.	No.
5.5¢	2337	1

View Market Depth

No.	Vol.	Price($)
1	70000	0.049
1	100000	0.048
1	150000	0.047
1	40000	0.046
1	13000	0.039

Price($)	Vol.	No.
0.055	2337	1
0.060	66833	1
0.061	15000	1
0.062	120000	1
0.065	80000	2

Last trade - 10.44am 20/08/2024 (20 minute delay)

LOM (ASX) Chart