Sorry to be the bearer of maddening mathematics, but the simple fact is that the 468 million attached options will keep the BNL share price anchored at current levels until production outweighs risk.
Looking at the numbers from last year, for every free attached option, investors purchased two new BNL shares at .004c. It seems .007/.008c is the place investors are comfortable offloading/derisking their purchases.
Buy 2x shares @.004c, get 1x .01c option Sell 2x shares @.007c/.008c, hold 1x .01c option Hold .006c/008c (50%/100%) profit plus one option. If/when the SP goes above .01c by enough margin (say .012c), purchase option at .01c
Investor now holds 1 share worth .012c or more, that cost .004c or even .002c overall.
Got the share, got the built in profit, hold no risk even if the share price falls below .004, because that just means not exercising the option at all, therefore preserving the .006/.008c (50%/100%) per 2x shares profit gained already. Of course, on the upside, these converted option may be worth much more but October next year.
If only retail investors could derisk like this. On the positive side, a rising tide lifts all boats.If all options are exercised before October 2026, the SP will be at least something like .012c BNL will have another $4.5 million in the coffers, and retail investor share value would have near doubled from current levels.
Not offering the ‘options deal’ to retailers was a low blow from BNL for long term investors, and our only option (excuse the pun) has been to double down @.004c, which I could do, but many cannot afford to keep protecting their investment this way as it is always a big risk.
My thoughts only, GC
BNL Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
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