YML - Yilgarn Mining

[insidertrading]

??

An option's exercise price will normally be set at a level equal or above the current share pricee.

Options would rarely get exercised if the share price never exceeded the option price! The company would normally be aiming to get it's share price above the exercise price so it can either reap the exercise cash, or so the holders (often directors and execs) can get a benefit from their options.

Ultimately the share price will have little relationship to the exercise price of the option, though, once the issue of the options is done and dusted. Witness Bannermans 6.67c options, with the shares now at $3.35 or so!

Thx Brujo...
Guess I need to do more reading on option/warrant etc
this min 100 chars thingy is really annoying IMO

 

[Brujo]

Thx Brujo...
Guess I need to do more reading on option/warrant etc
this min 100 chars thingy is really annoying IMO

Yes, it surprises me how little options are generally understood (although I must confess I've never bothered to get much into warrants and derivatives like them). Once the principle is understood, they are reasonably simple to understand and can be a very powerful trading medium.

My very first trade in modern times was an option spread on Government interest bearing bonds. I entered into it on the advice of the broker and then spent approximately 2 days trying to understand exactly what it was I had entered into!!

 

[YOUNG_TRADER]

Guys you're really overcomplicating YMLO, these aren't a hybrid/derivative/warrant type security, there just simple options,

Buying 1 YMLO gives you the right but not the obligation to acquire 1 YML at 25c simple

So if you think that Carr Boyd will live up to Patersons expectations (and mine) in that it will be worth about 40c to YML,

then those YML are worth 40c-25c= 15c

Of course if YML sits at 25c then YMLO= 0c

Keep it simple guys

 

[alankew]

YT anything to be read into the fact that there are no buyers of the options this morning and i presume you expect the options to be significantly higher before expiry date-in this current situation(short dated)is it best to exercise them before they expire.Not after advice just your opinion.Thanks

 

[ALFguy]

Options sound simple enough, but I've never understood the trading I see.

For example, someone just bought 20k ops at 7.9c - why, when the heads on offer are cheaper right now?

 

[Ruprect]

Leverage, ability to purchase a great deal more shares for the same outlay. Benefit is, if the sp surges, you get a much greater profit. If it doesnt, come the end of June, you could be left with nothing. No point exercising an option when the share can be purchased cheaper on market. Options are much riskier, but the rewards can be amazing.

Purchase at 7.9cents, you are backing the horse that says that YML will be worth more than 32.9cents before expiry (in this case June)

 

[YOUNG_TRADER]

YT anything to be read into the fact that there are no buyers of the options this morning and i presume you expect the options to be significantly higher before expiry date-in this current situation(short dated)is it best to exercise them before they expire.Not after advice just your opinion.Thanks

Mr Market doesn't believe their value,

Just like JMSO, I was lucky enough to buy another 250k@ 1.5c about 1 week before they ran as there were no buyers, I sold that lot a 10c a week later,

High risk but very very high reward

I'd wait for Carr Boyd, see what mkt takes the YML SP to and see what you can sell your YMLO at and decide then

 

[Bullion]

What can we make of the seller at 36c wanting to offload 1,000,000 shares? Someone with big pockets wanting to keep SP down, or just someone who has accumulated a hell of a lot cheap and wanting to take profit?

 

[YOUNG_TRADER]

What can we make of the seller at 36c wanting to offload 1,000,000 shares? Someone with big pockets wanting to keep SP down, or just someone who has accumulated a hell of a lot cheap and wanting to take profit?

Its the same capper who was their in Jan, YET WHEN THE BUYERS STARTED GETTING TOO CLOSE THE SELL ORDER VANISHED,

Think about it, if you wanted to offload 1M shares in a company like YML would you put up 1 single order? No because it would convince buyers there is no need to bid up the price as there will always be large supply around 36c and would scare sellers into dropping their order below 36c as there is a very slim chance that the buyers will break through,

With Carr Boyd fs due out very soon (my guess this week or next at the absolute latest) I expect the SP to test 40c (per Pato's conservative valuation) lets see what the capper errr I mean seller does when the bids start to rise again

 

[Bullion]

Thanks YT that's what I thought, just wanted to get a confirmation... I believe there was another seller there earlier in the week to make it a 2mill share wall.

Hopefully you're right and he disappears!

 

[3 veiws of a secret]

In response to the million line @ 36 cents it's no big deal....it was interesting last week that somebody decided to bait the buyers by putting down 10K parcels in the sell sector I think from 30 cents to 35 cents.....the sceince of selling=logic and emotions......

 

[INORE]

I imagine that after a positive announcement to mine carr-boyd comes thru, it could take a few days or more for that info to filter through/sink in to any new investors and then perhaps we'll get a real idea of what the market thinks YML is worth.

 

[Mozart56]

I imagine that after a positive announcement to mine carr-boyd comes thru, it could take a few days or more for that info to filter through/sink in to any new investors and then perhaps we'll get a real idea of what the market thinks YML is worth.

Depends on just how good the announce is. A $200M NPV could see it move very quickly! Anyone care to estimate what the NPV is likley to be? By all accounts the mine appears to be going ahead.

 

[INORE]

I think YT came up with a figure 4 or 5 pages ago which was around the 200-300 mark.

As far as the delayed price goes...I noticed YT mentioned RML's nickel project. They announced on 7th of march but their SP didnt rise rapidly till about mid april...That seems to be a huge delay...does anyone know why this happened and if the same principle might apply to YML? cheers.

 

[KIWIKARLOS]

The question is will they make a trading halt before announcing the results or just float it out there and watch the vultures fight over the scraps

 

[YOUNG_TRADER]

Hmmm interest has slowly but surely been building the last few days,

I'd love to see that 1m sell order at 36c get nibbled at to see if it fair dinkum, my guess is it'll get pulled shortly afterwards

 

[Ants]

LOL I was just thinking that, and came here to see if anyone mentioned anything about it?

 

[KIWIKARLOS]

I think he's just put it there to entice everyone to place sells underneath it in fear of not getting a sale when if an announcement comes. Prob the same person who is buying up now.

 

[KIWIKARLOS]

Has anyone also noticed that every single buy has been at the same time in groups of 40000 shares at market price, as if this is not been manipulated and accumulated by that guy with the 1000000 sell

 

[YOUNG_TRADER]

Hmmm tend to agree guys,

Theres no way on a stock like YML if you had 1m and wanted out you'd put up an order in that manner, no way, theres just not enough volume/liquidity

I see no other logical reason than it being a capper

When Carr Boyd comes out I'd expect to see a strong run, on my calcs

600kt's @ 1.4%Ni + 0.5%Cu has an In Ground Value of $500m

Assume 50% profit margin for toll treatment and you get project NPV close to $250m, 51% for YML = $125m or 5x YML's current mkt cap