the options are not for exercising, since it costs 20 cents to exercising them. why would you pay 20 cents to exercise the options when you can buy shares on market for 9.5 cents
however, the company is issuing new options for existing option holders for only 0.2 cents. that is extremely kind of them however appropriate, since the last option issue, costing 1 cent each, expired without a chance of being in the money
therefore, if one spends $600 to buy 200,000 options on market this month for 0.3 cents and then spends another $400 taking up their entitlement, they will have 200,000 options costing $1,000
if AKA reaches 40 cents a share by 31 May 2015, those 200,000 options will be worth $40,000
profit on $1,000 investment = $39,000
however, if one snags 300,000 options at 0.2 cents & spends another $600 taking up their entitlement, if AKA reaches 40 cents a share by 31 May 2015, those 300,000 options will be worth $60,000
profit on $1,200 investment = $58,800
regards
AKA Price at posting:
9.5¢ Sentiment: None Disclosure: Held
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