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ATEX, MX, VLN, although ATEX is not exactly Penny. Those are my conviction holds currently.
I don’t know why more people aren’t looking at this Canadian mining company. $ATX.V / $ATXRF TRADING HALT “Just announced a C$85M private placement at C$2.60 with warrants at C$4.00. The warrants are good for 4 years but come with an acceleration clause where if the stock trades at a VWAP above C$5.00 for 20 consecutive days, the holders will be forced to exercise. This news is very bullish. First, $85M is a huge amount. Second, the placement is right at the money. And third, the warrants are way out of the money with an acceleration clause north of C$5.00. We strongly believe ATEX will be a big winner in the years to come, and looks like a lot of other people agree too. Oh, and Stifel also upgraded their rating on the stock to C$4.50 yesterday.”
Has anyone figured out what ATEX is doing?
>If ATEX finishes below $17.50, then your options are automatically exercised for you (unless you give an instruction NOT to exercise them). If ATEX finished below $17.50, then your options are **SUBJECT TO AUTOMATIC EXERCISE** (unless you give an instruction NOT to exercise them). Your broker may choose to not exercise an in the money option if you do not have 'sufficient' equity (i.e., exercising an option creates a margin call and significant concentration risk). Or if you have a cash account, the broker will not exercise long puts because you would have a short position in a cash account which is illegal.
Everything you have said is generally correct. If ATEX finishes above $17.50, then your options automatically expire as worthless (unless you give an instruction to exercise them). If ATEX finishes below $17.50, then your options are automatically exercised for you (unless you give an instruction NOT to exercise them). You said that you have given an instruction not to exercise, so no matter what happens - even if the price on ATEX were to drop way down - your options will expire as worthless. Keep in mind that the price you see (the last sale price) is often completely irrelevant for lightly-traded options. The more useful price is the "bid" and the "ask". I don't know without looking (and you didn't give the expiration date), but I would bet that you will probably see that the "bid" is $0.00 because nobody is interested in buying those options. The ask is something a lot more than $0.00 (maybe $10) because someone out there figures "sure, maybe there's some sucker who will buy this, and it costs me nothing to list these for sale".
ATEX Resources (TSXV: ATX)