Easy, there are 48million ASX listed options (EGAO) due to expire on the 13th March. The strike price is 25c.
Someone just sold their EGAO at 1.5c, meaning the buyer can pay 25c and own EGA post 13th March for 26.5c.
The problem is that those who participated in the float got the options by Patterson's as a 'bonus'. Many of these holders might not have the cash or desire to convert, thus they are selling at any price. You will remember EGA didn't use Patterson's on the last CR. Patterson's have been dumping their clients stock and options as retribution. Just the games brokers play. Patterson's have a particularly poor reputation.
The whole thing works like a large credit raise. Just imagine EGA is raising $11mill @25c. It needs to be digested before the SP moves higher. It has been acting as a huge handbrake for months now.
EGA Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
