Hi Jin,That would be correct based on just a few days before...

Hi Jin,

That would be correct based on just a few days before exercise.

But as you say the "time value of money" of options leading up to the exercise date may mean your options might trade at a slight premium in even May or June 2013...diminishing towards the actual date you need to hand over the 5.5c.

Say if AKK was 5.5c-6c in Jan 2013 with 6 months still to run, you might expect the oppies to be around 1.2-1.7c

ie
AKK heads moved around 100%
AKKOA moved around 200%

So the big bet is that AKK keeps going strong, and the oppies leverage is very good at present but certainly high risk, and there isn't that much time to run, 9 months will go fast.

I hold a few OAs for the gamble, but only about 2% of AKK holdings. If we break 3c and confirm, I may take another 1m.

Well done on your entry into AKK.