I think he was refering to current sp 48c + 5c oppy = 53c. Meaning anyone that uses that same stratergy "could" in theory make an instant return of few percent.
In contrast, you could look at it as he paid 51.6c for a share that is currently worth 48c. Or as he hasnt paid the final 50c yet, he may be better off letting the 1.6c rights lapse.
Its all about that "free" option. 70c and 2years to run, but you only get 1 for 2. So when the options begin trading they need to be about 8c to be worthwhile, anything less isnt worth it.
ie better to buy the fully paid now, then buy options seperately on market.
Goodluck, it certainly is looking cheap.
TRF Price at posting:
48.0¢ Sentiment: Buy Disclosure: Not Held
