I disagree with this reasoning (and think we have had this convo before haha), I cannot see soph's crushing heads and then trying to sell oppies as oppies price reacts to heads price. Generally Soph's will sell heads above the raise ASAP and then hang on to the oppies as they can provide upside while being free carried. I can't see how this quote of yours further above makes sense 'If retailers don't buy their oppies, they can't unload their heads without taking a loss, the raise was at 3c, any soph selling in the past 3 months has sold at a loss, I'll bet most Soph's selling was done on/before the day of the mining licence being granted.
I think the reason they haven't fallen below 0.007 (for more than a very brief period) is that buyers think there is a very decent chance that this company will be at 10c within 12 months time and there is just 128,500,000 listed options (at $0.007 this is less than $900k worth)
eg 10c future price (giving no time discount premium to the oppies)
2.4c heads => 10c = ~4x
0.7c oppies => 10c -4.5 conv = 5.5c = ~ 8x
At around 6-7c this is about parity (giving no time discount premium to the oppies)
eg at 6.4c
2.4 => 6.4c = 2.66x
0.7c => 1.9c (+ conv) = 2.71x
I agree that heads provide better value at current prices, but this is assuming liquidity is good for both, in which case I'm sure oppies would be cheaper, there just isn't many oppies or shares trading hands.
The reward is still significantly higher for oppies should this hit 10c+, 10c+ is probably the reason most are invested here. There is no guarantee that you will get a fill as the oppies are so illiquid, clearly people are willing to pay up for the options, especially those with a longer term view.
Another reason heads dropped (excluding the general macro and spec situations) is because plebs such as myself sold heads to get oppies on market, this one of many reason heads have dropped.
PS I'm currently in the queue for more oppies at 0.7c and heads at 2.3c, happy to pay that for oppies because I doubt I will get any at 0.006.
I'm sure we can agree that with the Zinc price heading up and the first shipment that must be imminent, hopefully both heads and oppies start moving up soon!
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