If you are selling the 'head' stock at 41c with the strategy...

If you are selling the 'head' stock at 41c with the strategy just to retain the options, you have have just lost 11 percent of your purchase capital committed in the raise (5c on a 46c purchase) to achieve this. That make these very significantly out-of-the-money options pretty expensive - to break even you now need to get above a 70c strike price i.e need the SP up 71% (a share price that you are assisting in beating down). I don't buy it; at least I don't buy the fact that this is being done in large numbers. Bear in mind also that if I was eligible, as an institution for these placement shares, I hold the stock and am also contributing, if I sell to just retain the oppies from the CR, to the value destruction of my underlying holding.

I also believe, albeit very cautiously, that institutions being asked to stump up in the Cap Raise, will have been given a little more info and guidance (than us punters) on the likelihood and progress of the Glencore debt decision. If I was a fund manager (I was once) I'd be digging deep to understand how this was likely to play out. There are no certainties of course, but I don't think this is the big sign that all is going to s@@t with Glencoe, at all.