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Re: naturalborninvestor post# 12709

Friday, 01/09/2015 12:23:28 PM

Friday, January 09, 2015 12:23:28 PM

Post# of 32302
correct but one isn't going to exercise the options now and put the $ up it wouldn't make any sense. Most of the time you would wait either near expiration or when the stock is significantly higher and you would excersice it and then sell the stock right away so you aren't taking any risk.

There is no investment of $122k until he chooses to exercise the option.


So for example lets say VAPE is @ $2 he can exercise options at .70 (putting up the $122k) and then go ahead and liquidate the stock @ $2 and profit $227,500 with no risk. The other side is lets say vape is trading at 50 cents and they are about to expire he wouldn't exercise the option they would expire worthless and he doesn't lose a penny.


I own some vape but just wanted others to understand what this is instead of thinking these insiders bought in open market with their $.

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