Options insights, page-43

With 12K of views and great comments, as the initiator of this thread I thought I’d do a quick summary.The general consensus is the options price should track the share price and be around about 34 cents less (the excise price which is due on expirer 29th of Feb 2024).

Some contributors feel the shares should trade slightly less because of the effort required to convert while others feel they should be slightly higher because of the opportunity offered to ride the share price up for a lower entry costs.

For some people this means a significantly larger # options than shares for others this means the same number of options as shares desired with the money saved being used for other purposes.

There was quite a lot of concern about option holders being wiped out if share price falls below 34 cents while shares are not restricted by time and the price can correct itself over time. This was counter balanced by others some who gave examples in other fields of similar scenarios. For me, the 34 cent excise is a little bit like a stop loss (not they I know how to do that) except that over the next 15 months the shares might dip below 34 cents and then recover.

One contributor thought the thread was “selling Disallowed“ others that the options were a no brainer. Some used fishing analogies (?) that I didn’t understand (or maybe it was just talking about fishing) and there was a number of excellent contributions overviewing computer tools and philosophies that may assist in the decision making around.

There was a standard amount of jargon and acronyms, most of which I do not instinctively understand.

Thanks everyone for your contribution.

For the record, I first bought AFU in 2011, I last bought shares after the strong negative response to institutional and sophisticated investor share placement not long ago. You could say I believe all of the above discussion, I believe that Arafura is great investment that aligns with my principles and that I don’t know what the best idea. So I recently sold all ARU my shares and bought about 3 times the number for ½ the sale price.