So, 1 for 1 at 10c? plus 1 free option strike at 16.
Option will trade for about half the head value, given its longevity.
So, 7.5 for a head + 3.8 oppie, at todays prices, says.....
That anyone who held heads at 10c, or bought more at 10c, wont be selling the heads under this price for any sort of profit taking.
It almost becomes a loss from here on.
7.5+3.8= 11.3
They would need to sell the head and the oppie at these prices to profit from the 10c entry, but some paid 11-12c.
When does it become a wash? (to sell all)
6.6 + 3.3 = 9.9
That is what you have to ask, where the selling pressure comes from. (and where it ends)
There may be some capitulation, by those seeing the sp crash and not understanding the mechanism.
If most presumably, want to retain either the head or the oppies, then, selling the head at a 2.5c loss, to hold an oppies with a 3.4c proffit, its pretty close to par.
If it gets any lower, folks will sell neither, and just put them in the draw for a while.
Bottom line IMO, the bottom is near, and i would suggest, that 6.5c is about it based on the above.
But it may not come to that.
7.5c might be viewed by fence sitters, as close enough.
I hold CTPOA only, and look to enter heads.
cheers
CTP Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
