Yet, here we are at the end of the day with BKTOC's sitting on a .03 cent discount to the heads.
In real terms, anyone who holds the options can convert them upto expiry by paying the Strike Price of .05 cents to the company and receive a further discount of 17.14% when they receive the heads based on today's closing prices. That's pretty insane isn't it. If you bought in earlier, then kudos to you. The discount is even better when you convert based on your initial buying price. Of course, that will also depend on BKT's shareprice when they go into your account.
So that leaves the underlying question.
Considering most here appear to think that the shareprice will continue on it's upward trajectory, given the recent purchase by Mr Copulos, wouldn't it seem prudent to convert whilst there is a decent gap now between the heads and options, before the gap eventually closes, or worst still, the shareprice retreats at some stage? Sure leveraging is a great opportunity when everything is going to plan.
Suppose it comes down to your appetite for risk compared to taking hold of opportunities when they are staring you in the face. That opportunity with such a wide gap between the BKT and BKTOC will eventually close.
BKT Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
