re: daytrades september 06 afternoon
Hi thejase, "Crazy to buy NTU at 16c"...
I think you are confusing NTUOB (which are options exercisable at 15c) with the rights which are not yet trading. So really buying NTUOB at 16c is about as crazy as buying NTU at 31c. 16c purchase price + 15c exercise price = 31c .... if you exercise. So 40c NTU implies a NTUOB price of 25c (forgetting about a time premium for this example). The only reason the NTUOB's didn't follow was because option buyers didn't believe the NTU shareprice was going to stay at 40c. Let's just say that over the next couple of days NTU stabilised at around 35c then you would find the NTUOB's would be trading at around 20c and the 16c buyer wouldn't be looking any more crazy than the trader who bought NTU at 31c. NTUOB's have nothing to do with the capital raising or the rights trading in any direct sense. Cheers,cw
