T4P - cheers for the response on my question re, the conversion...

T4P - cheers for the response on my question re, the conversion of options.

I see the point you made with NDO - that is actually a very smooth play and I had never thought of approaching equity options that way. Given the enormous amount of liquidity in CCI, I foresee price spikes and the way the options are tracking so closely to the FPO's at the moment, there is definitely an opportunity to trade in out and of the heads and the options, if one is diligent enough.

When you are dealing in millions of options, there does come a stage when it is no longer prudent to hold a large position, especially when you dont have the necessary capital to convert them. But if you look at a stock like TOX, there was plenty of volume still circulating through the oppies right up until their expiry. Like you said, it is a tough call, but I think if people are going to take a large position in the options, they need to approach that position with a well-thought out plan - sell into strength and gradually convert over to the FPO's looks to me like the best way to go.

I have followed the VWAP's and intra-day 30 minute charts on this one closely and I think breaching 0.019 today was important, even though it wasnt on huge volume. There will be traders on the sidelines waiting for CCI to plow through $0.02 with some large volume. Huge psychological barrier. There was serious accumulation in the options at 0.006 and I always find that the options will lead the FPO's. We could see some serious action tomorrow.

I am still a little uncertain about how to approach this play. I took up options at 0.005 and 0.006 and the FPO's at 0.016 - I cant see the mining licence come into play for quite a few months yet - maybe a supply agreement or two and further announcements re: other projects. Next few days are important with regards to establishing a new base at higher prices. Any faltering above this current level and the share price may possibly fall back to support @ 0.016. The potential medium term profit on this one is just too good to ignore, though.

Have appreciated all the input from various posters. You all know who you are.

marchello