IMU 13.2% 6.0¢ imugene limited

Very interesting and valid points. my counter is:- anyone paying...

  1. 228 Posts.
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    Very interesting and valid points.

    my counter is:

    - anyone paying 1.3c today for the IMUOA (2.6c, Nov 2020 options)... is betting for a much higher price then just a 3.9c IMU share price in Nov 2020. They are willing to accept the possibility of IMU sp < 3.9c by Nov 2020 for a chance of a much higher sp.

    - taking your 7.8c sp scenario... if IMU reaches this before Nov 2020... the IMUOA oppies would be valued approx 5.2c (7.8c sp less 2.6c exercise price for the oppies). The option holder can sell the options on market at 5.2c prior to expiry and not have to pay the extra option exercise price of 2.6c at all. Pocketing a gain of 4x (5.2c/1.3c).

    while the IMU heads buyer today paid 2.6c. And using the same 7.8c sp scenario for Nov 2020... IMU heads holder would pocket a gain of 3x (7.8c/2.6c).

    therefore oppies strategy beats heads strategy by 33% in this 7.8c scenario (I.e. 4x/3x).

    At the 10.4c scenario... advantage on the oppies strategy is 50%.

    And even better the higher the Nov 2020 sp.

    Buying the listed options does not mean you are locked in to exercising the options if in your favour coming up to expiry date. You can sell your options on market at any time... when you see a good trading opportunity in your favour. No need to wait to exercise and pay an extra 2.6c to buy the underlying IMU shares.

    in summary... higher risk/ potential higher reward for the oppies.
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