r options tradable, page-5

nine lives...

Must qualify on the options equation.

The higher the price runs, the lower the premium will be...eg, at 60c heads, the options will likely be close to par, or in other words, 15c (+/-3c) behind the heads. This is because as the price rises, leverage available via the options is reduced. Further, the expected lower liquidity will make them less appealing than heads at higher prices.

With the heads in the 30's however, the attraction of additional leverage via the options is much greater. This will also result in higher liquidity, negating any benefits of safety found in the heads.

Much more to options price equations however...near term "expectations" on the news/activities will impact, so to will longevity of issue, all of which add premium to the price.

Bottom line...whilst the market expects momentum to continue, we can expect the options to lag in the 10c range.

Much of this may well depend on liquidity, which can be expected to higher when they first list as some take profits, potentially resulting in par prices (+/-3c)...which will soon move back to premium as the issue gets snapped up and the free float reduces.

The 2 years life, given likely developments, makes then a rather attractive proposition.

Will not be selling mine whilst the story progresses, in fact I suspect I will be in their taking advantage of listing day liquidity.

First trade expectations for oppies are 50c+ from me.

Cheers!