Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s): CRLFF

Energy Oil & Gas E&P

Cardinal Energy Ltd. is an oil and gas company with operations focused on low decline oil in Western Canada. It is engaged in the acquisition, exploration and production of petroleum and natural gas in the provinces of Alberta, British Columbia, and Saskatchewan. Its operating areas include the Midale, South District, Central District, and North District. It has over 730 million original oils in place (OOIP) and its low decline production of approximately 3,200 barrels of oil equivalent per day (boe/d) is supported by both water and carbon dioxide (CO2) enhanced oil recovery (EOR). Its South District operating area is located east of Calgary in southeastern Alberta and produces medium gravity crude, as well as liquids-rich natural gas. Its Central District operation is located in East Central Alberta, which is focused on producing oil from multiple, large original oil in place (OOIP) pools. Its North area includes Grande Prairie, Clearwater, House Mountain, Mica, and Mitsue properties.

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Cardinal Energy Ltd (Alberta) > 700 calls

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Comment by Quintessential1on Sep 30, 2023 3:28pm

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Post# 35663440

RE:RE:RE:RE:RE:RE:RE:RE:700 calls

Yeah I'd like to understand more too if only for the learning experience.

I know he posted about being able to buy a condo mortgage free with proceeds from Peyto calls which even in a low real estate market is not pocket change so yeah, he is playing a big game.

He doesn't seem too interested in responding to us but maybe teaching isn't his thing. That's cool too.

GLTY and all

JayBanks wrote:

Quintessential1 wrote: Thanks Jay and that is good info about when you might want to excercise early.

I think it is european calls that have to wait until expiry and I might have gotten confused about.

I can see that if Shenty's CJ calls went in the money in October Shenty might want to exercise them gaining 3/4% per month on his money (more than a GIC) but can I assume that as the share price goes up the calls trading value also rises and may be worth more selling on the open market?

GLTY and all

JayBanks wrote: If you own the call you can exercise at anytime... and also decline on expiry (apparently with a broker call)...

I believe the main reason you would exersize your call early (rationally) is for dividend collections, it would likely have to be a significant one like a special .. or yes, maybe turning around and using your new holdings for selling call options... or a rights offering, or a significant vote like a M&A...

I would assume he would hold the calls while it has continued momentum upwards, after it plateaus it would be decision time... either take possession and sell calls for premium or as you said take the profit selling into the open market be it just the options held or the shares and look for a new opportunity... (since he is playing this game with confidence I can't see him taking possession to stay long and just collect the dividend like many of us would)

I'm fairly new to options, so hopefully he can tell us the actual game plan, I would like to understand more myself if I'm missing something... everything I'm talking about is from studying/reading basic ideas and strategies... if he's playing that big of a game he's got more experiance and likely a more sophisticated plan.