Replies to post #423941 on Anavex Life Sciences Corp (AVXL)

[Gator328]

Risk free is not exactly accurate. Dr. Missling didn't pay any cash out of pocket for those shares, but choosing to keep them rather than immediately selling them creates de facto exposure. If AVXL goes to 0 and he could have pocketed the cash, he loses nearly $1.8mm (correct the math if I am mistaken).

Granted, he's in the green until the stock falls under the $1.60 price he paid for each share but to say that he's without risk is to ignore that he could have sold and pocketed the cash but chose not to.

And deep down I think the fact Dr Missling decided to keep those 232k "free" shares scares a lot of people who have significant unhedged short positions. Actions speak louder than words and at the end of the day $1.8mm cash in hand is a lot of money to defer to the future.

[kevindenver]

In your zealousness to spin the negative, try not to lie going forward.

[raja48185]

I wish someone had given me 500K FREE options subject to some condition - that I would lose everything if I failed to exercise them by a certain date (a few years out) or if the pps were to be below a certain dollar value, (as in for example $1.6), whereas the potential for profiting as the pps moves higher and beyond that dollar value (say $1.6) is limitless (hypothetically).

But then comes the hard part - whether to accept the offer, because of the RISK involved.

(After all, I do not want to pay tax on the gains to IRS; the public will know how much I stand to gain and debate whether I really deserve it, which has the possibility to bruise/hurt my ego; what if my better-half divorces me seeking half of my fortune sometime - sooner or later in life, etc. etc. Too many Risk factors).

Now I begin to wonder why do these CEOs accept such kind of options given the RISKS involved. More number of options means Higher Risk.

Somebody please help me buy options without paying the option premium. I will settle for Call/Put Options, OTM with reasonable strike price, preferably with far out expiration.