New to HC. First post for PTX. M & D retail investor.
Super delighted to see rebound this week. Had a nervous couple of months there, but I bought a " fiscally irresponsible" quantity while the SP slid and went the full whack on CR. I'm in deep relative to Net wealth it has been said. Accept there is risk, feel the potential rewards justify that. So excited to see how the next couple of years play out.
Now, about options! I'm wondering if they are really a great way to raise capital? Excuse my naivety if this obvious. PTX is the second company I've had interest in, employing the options cap raise strategy, both PTX and the other , endured SP erosion. Granted there are many moving pieces to the puzzle but if selling ordinary shares to buy options to exercise and repeat is a thing, then yes, company pulls in cash. However, that comes about to the detriment of the Share price? I read on HC some chap doing it 20 odd times to another company and made solid coin. I suppose there are personal tax considerations and I've heard about the" wash rule"( can't sell at a loss and rebuy within 61 days), not sure if this applies in the case of options. All of this makes it very complicated for little old me but if it's done repeatedly by sophs and instos then all that selling with no corresponding buying support is bound to butcher the SP and then SH confidence as a result, leading to more selling? Further in PTXs case, to run a capital raise and the options concurrently, along with the announcement drought, set the SP up for the slide of the last couple of months that i admit I took advantage of.
Personally, I can't wait for the end of this month and put all this dark options magic in the rear view mirror.
PTX Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
