Just completed doing some figures on the PRRO options and makes...

Just completed doing some figures on the PRRO options and makes for some interesting calculations.

Lets assume you got in with the 28 cent SPP a while ago, and lets assume you have 500,000 shares.

The 500,000 would have cost you $140,000.
At 500,000 you have the opportunity to buy 125,000 options at 2 cents, being a $2,500 outlay. The options expire on 19th June 2017. Lets make another assumption and say by June 2016 (3 years away) PRR sp is 56 cents. Your options presumably will be worth 34 cents. If you sell you will have $$42,500, returning a $40,000 profit, or a 635% increase on your original outlay. Your PRR shares would be worth $280,000, returning a 100% profit.
I envisage that once the options start trading at a starting price of 2 cents, those wishing to take a punt will be buying them up very quickly. For another $2,500 outlay at only 2 cents then you will have doubled your holdings for a very small outlay. Using the figures above, you will now return $80,000 profit...not bad for a $5,000 outlay.

These are only assumptions...but I can see a run on the PRRO options on release, and holders putting them in the bottom draw and then re-visit one year before they expire.

Food for thought