Camrova Resources Inc V.CAV.H

futures Prices

[loosechainge]

See the link for copper futures. Prices were up on the long end yesterday a nickel and again today. I don't know when the hedge trade took place but it is in the realm of pricing. As for picking numbers like 3.50 and 5.00 I am sure they would of loved too. Sell a 1.40 (5.00) out of the money call and get an at the money put for no cost. sure I want to place that trade with whomever is offering it. PM me we can set it up!
There are a pile of strategies that could have been used. Ratio collars, expandable forwards, etc. These guys are not options traders and wanted to get the bank the coverage on the downside with out completely selling off the upside. Copper between 2.40 and 3.97 and you are getting spot for all the production. If we get some interesting moves to the upside there is nothing to stop them from adding to the option position. This was the required position the financiers wanted. Should 2014-16 copper run to 4.50 - 5.00 range would love to see them take some of the surplus cash and pile it into some 4.50 puts guranteeing some pretty serious coin for the first 3 years of operations. These are historically good numbers with only one foot in the water.
As for the trading this paper is being digested. There was lots to eat and as it gets placed in good homes the price will begin to reflect the realities. Worst case best case. Even at 2.40 copper the PE on this stock would still be low at current share price. 
Buy it bury it in your tax free account, forget about it and come back in a few years. Think that should work out rather pleasantly.