profit taking, page-3

Hi gonuke, I am holding the atqo's.

At the moment, they are trading at a discount to the share price, so while that continues, it makes sense to exercise them - the result will be that you have then acquired the shares at a discount and can either sell them at an immediate profit or continue to hold at a good entry price.

For instance, I bought my atqo's at 25c when the share price was around 53c. This is equivalent to buying the shares at 50c (well, actually cheaper when you consider you don't need to cough up the other 25c for 8 months and can use it for other purposes).

If short selling was allowed, then there would be an immediate arbitrage as you could buy the atqo's and sell the atq's.

It baffles me why the atqo's trade at a discount, but I am happy they do as I am looking to accumulate.

If the position reverses and they start trading at a premium, then it may make sense to sell the atqo's and buy the stock. It just depends when you are looking to exit and what the relative prices are doing in august.

Hope that helps...