POK 0.00% 20.0¢ potash minerals limited

POKO - The Options?

  1. 1,239 Posts.
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    Here is a little problem to solve [ 3x Questions] .......

    I have some  30 November 2015 POK Options [POKO]
    I was given them free about 18 months ago on 1:2 basis
    So that's Great !!....

    They opened today @ $0.0410 [the month's high was $0.060]
    They closed today @ $0.0340

    Question 1 :
    Should I sell the lot now [tomorrow] @ $0.410
    and buy POK @ $0.15  [hopefully?]

    This means that - for every 10,000 POKO options I own.......
    I buy ONLY 2,500 POK shares
    This amounts to a 75% drop in my POK leverage !!.. ha! ha!

    There is NIL Capital required from me - other than in / out brokerage -
    [and unfortunately a Currency transaction cost - due to POKO being held in UK based ISA - dammit !!]

    If I buy POK @ $0.15 now [Q1] I hope to gain on the upside to say $0.30 [100%]

    If I hang on to the Options to nearer 30 November - when POK is say $0.30
    I might sell the Options for $0.10 and buy 3,333 POK shares per 10,000 Options
    Only a 66% drop in my POK leverage !!.....  

    Question 2 :  
    Should I Exercise rather than Sell my Options?.....
    At a cost of $0.20 / option - the Capital Cost to me, for every 10,000 option exercised, will be $2,000 + brokerage costs.
    My Leverage stays the same......

    Question 3 :
    What is the upside for Buddy going to be after 30 November 2015 ?..
    With 48,220,948 Options exercised @ $0.20 and $9.4m is in the Buddy treasury?

    $0.30 ++++ what ??....


    The POKO chart is interesting at the moment.......


    Thanks for your considered advice !!

    GL - Oilf.
 
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