stock now 1.85 and options at 25cents, page-2

Difficult one this. I've been sizing them up wondering whether to buy for the oppies. Whether this is an arbitrage play obviously depends where the shares will settle ex entitlement.

I've got a gut feeling they will fall to around $1.20, but may take a week or two.

If you buy today at $1.85 and sell Thursday at $1.40 you lose 45c per share but gain half an option.

If, when the oppies list the shares are $1.20, the oppies should be about $1. So you gain 50c (half an option).

Not much in it under that scenario. Anyone got a better scenario?

cosmos