Just had a thought. Since the GIPO's on AIM last night had a bid...

Just had a thought. Since the GIPO's on AIM last night had a bid and offer listed during the opening, the MM (HB?) must already have transferred a bunch of the oppies in order to create the market. Would that make sense?

Regardless, no one was tempted to buy the GIPO's even though they were offered at a discount to the oppies here.

Now, if you apply the standard market gap that has ruled for the options relative to the FPO's here in oz (ie the GIPO's maintaining a gap of about 4c less than the FPO's) that would make the options on AIM worth about 2.1p. They were on offer all night for 1.5p but nobody was interested. That's a 40% arbitrage and well worth the effort I reckon.

Cheers

Badfish