neo / opl, page-22

re: neo / neoo - potsie no it's 5c - we are saying it needs 10c to be effective because you are already paying 2.6/2.7c to be involved. I have to agre with yux - I doubt NEOO will only be 5c when NEO is 10c but I always work the consevative side of that sort of calc to see if it is worth it - most of my buying was back when they were 1.5/3.6 so it was an easy calc but now NEOO only offers a bit more leverage - my assumptions using closing offers -

NEO 5c 0% NEOO 2.7c 0%
NEO 7c 40% NEOO 3.9c 44%
NEO 10c 100% NEOO 5.7c 111%
NEO 15c 200% NEOO 10c 270%
NEO 20c 300% NEOO 15c 456%

If you agree with my assumptions then NEOO is slightly better but time has already knocked NEOO down from about 2.9c when NEO was 5c to 2.7c now. If volatility picks up again (which no doubt it will!) then my assumptions could be higher.

Anyway - food for thought - salty's point about who holds what is probably the most pertinent at the moment. I have sold about 20% of my NEOO - partly in a missed switch into NEO, partly for a car we were buying and partly because of the delays in drilling and testing. If there are more delays I will probably sell more bits and pieces - it's not a question of my expectations of what they have - just risk management against the maturity of the options and management failure to deliver (yes there have been good reasons but it is still failure and when you are in options your are playing against the clock).

We should hit the usual pre drill buying this week as we approach next weekend - I really don't think people who want NEO exposure will want to sit it out from Friday onwards - look for a new high this week although most will think we will still trade out the 4.8-5.5c range.