That adds an interesting complexity to the value of an OPTOA at 30 cents.
As I understand it, I can redeem the option anytime up to August 2025 with a strike price of 80 cents. Spending 30 cents now, what are the chances that by this time next year the price will exceed the 80-cent strike price before August 2025? If the price is at 85 cents, it would still be worth redeeming to cut losses. Anything above $1.10 would mean profits.Obviously If the topline results are negative, the options will be worthless, and the shares will approach zero or at best a few cents.
GPT calculated that, with shares priced at 65 cents today and options at 30 cents with an 80-cent strike price with a hypothetical price of $2 in June 2025 if the topline has still unreported, without any bad news.
So $100K extra profit for not taking on that much more risk.
Sounds all shallow and greedy to look at it like this given the drug has the potential to hundreds of thousands of people.
(20min delay)