Market depth is looking very very healthy now Good leverage can be obtained now with MOGOA. They are exercisable at 30c and have only risen 1c in the past week and a half whilst MOG has risen 10c.
There is a 22c difference between the two. What this means is, MOGO can enjoy twice the upside leverage that MOGOA has and enjoy half that leverage downside.
Why is that you ask?
For every cent MOG goes up, one would expect MOGOA to follow suit. There's still a bit of a premium there but that is dwindling.
As thru the exercise of MOGO, you will get an MOG plus a bonus MOGOA, MOGO should be going up 2c.
If MOG were to go up another 2.5c tom and finish at 35c and MOGOA close 2c up at 12c, MOGO should be 27c, 9.5c higher than today
Its currently trading at 17.5c when it should be trading at 22c. For those wanting to invest in MOG for the long term, you should buy the options at their current value and then exercise them, saving yourself 4.5c. It may takes a week or so to convert the MOGOs to MOGs and MOGOAs but if you are investing for the long term why would you care about short term fluctuations.
Options should never trade at a discount for that very reason. Its amazing too looking at DFTOA trading at 0.6c while the ords are at 1.9c with ex price at 1c. If you are medium or long term term investor buy the options and then exercise.
SOrry I got off the topic a bit talking about DFT but there are tremendous trading opportunities with MOGO with MOG continues their price rise and the market doesnt factor the increase into the MOGO price.
In summary, for every cent MOG goes up now, MOGO should go up 2c. For every cent MOG goes down, MOGO would only go down 1c (same rate its being going up to get to this stage)
MOG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
