WKT mining licence dance, page-36

Options Update

Yesterday it was obvious that a heads holder sold heads and immediately bought OA's.

It had me thinking … so here goes.

At 9c the Opts were 3c with a 15c strike … costs 18c to own a head worth 9c at the time - a 100% premium.

Today at 16c the Opts are 7c with a 15c strike … costs 22c to own a head worth 16c - a 37.5% premium

They strike in Dec 2019 so effectively, today, for a 37.5% fee you can buy an Opt to own a head in Dec 19 and cash the difference … 16c less 7c - 9c. So 56% cash in to own the same number but pay a 37.5% premium in Dec 2019 if the sp is the same as today.

If you cashed in and bought twice as many Opts as heads today and the heads are worth 50c Dec 2019 …

You bank - 2c for every head sold. 12.5%

Your heads would have increased 3 fold plus a little to 50c - 312.5%

Your double amount of Opts will have gone to 35c price … 72c for two (35c plus the 2c cash) … from 16 … 450%

Interesting ???