Many were bought at .05-.10c early on in the piece
Some but not many will be selling to realise a quick profit, top 20 holders prob none of them selling, why would they??
Only 5,000,000 options traded Friday, about 9% of all options, yet up 50%, so still being held tightly imo, why u must ask yourself ????
SP only needs to reach say $1.20 by Oct for most options to convert......... Even if half convert = $30,000,000 into the kitty All convert $60,000,000 into the kitty
But 1.20 SP by Oct 07 is a joke, it was that price during the day Friday..........lol still 5 months from ex date.
So $2 absolute minimum by Oct 07 is a given imo I actually think it will be $3-$4 easily by then but lets say $2..............
Therefore you could pay up to 75c an option and still be considered a smart investor in my book, I actually think the options will be around $1.50 minimum by end June, with the SP around $2.50 by end June.
People say buying heads is less of a risk,sure it is if u dont know what u are doing but its really not that difficult to work out is it??
Grow some balls I say
But anyway u buy heads which helps my options anyway so either way doesn't bother me, I just think the options still have much better leverage to the heads, yes the options are tracking well ahead of the current SP.............must ask yourself why that is the case................. smart money........maybe.................or are they all dopes.............I doubt it.
If your buying heads then im assuming your hoping for at least a 100% return by Oct, otherwise BHP and others are down the road.
So lets assume SP is at $2.00 come Oct 07, still 100 trading days away which to me is a long time but some think it isn't, so if I pick up the options for anything up to 60-70c now thats good buying isnt it??
Also I get nearly 3 times as many options as the heads buyers at the moment $1-$1.10 per head v 35-40c per option.
So when you have 100,000 heads, I have 300,000 options and can convert .................work it out, I could also offload 2 thirds of my options over the next 5 months to realise a straight up profit and still convert the remaining 100,000 to be back on par with your holdings of 100,000 but ive also picked up some profit along the way.
Anyway these are just my observations, sure options might be riskier at 40,50,60c when the SP is lagging, but again whether u buy shares or options, isnt the upside the reason we buy??
DYOR
I hold both options and heads 70/30 split for good reason.
Cheers
RRS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
