digster
27-08-2008, 02:15 PM
RRL recently consolidated their shares 1:10 and since then, I have watched the stock slowly track down towards pre-consolidation prices (roughly around the $0.10 mark - yesterday it was $0.12). I want to keep investing in this stock but am worried that another consolidation will take place (not to mention further dilutions)... I expect it will be a number of years before the company starts to make any turnovers so that any investment today will be diluted and consolidated to the point where investing early in a speculative stock just isn't worth it.
Is investing in options a way to avoid consolidation/dilution? or will any options be affected in the same relative way?. I am quite inexperienced in option trading so would appreciate any advice on this issue.
I guess another way I could put it is: If I buy 100,000 options today at $0.067 will I be able to still buy 100,000 at the excercise price before they expire in 2014?
Is investing in options a way to avoid consolidation/dilution? or will any options be affected in the same relative way?. I am quite inexperienced in option trading so would appreciate any advice on this issue.
I guess another way I could put it is: If I buy 100,000 options today at $0.067 will I be able to still buy 100,000 at the excercise price before they expire in 2014?