RE: Selling Options18 Feb 2021 11:29
@computer909
Different people have different risk parameters for there investments.
Either way we see this, the Aim market is Volatile. Companies are not always valued based on their potential in line with "Normal" ratios and calculations to derive a value.
here are companies with shar prices that are absurdly high compared to their P/E ratio, and there are companies that look like they should be worth multiple times the share price which fail to ever get there. Sometimes due to constant placings, sometimes due to bad management... there are a multitude of reasons.
You are happy to pay your interest on your mortgage, on the hope of making more back from the stock market.
There are many people who have lost just as much or more on stocks than the cost of your mortgage. (I am not one btw, but have had losses and gains, although I play with pennies compared to a lot of you).
Overall I like to have money in different places with different risk levels.
I would prioritise having a mortgage paid off so I have a roof over my head if I have any R/L issues, (eg loss of job). House prices also increase on average at a good rate so it is still an investment.
I would then ensure I had a back-up of easily accessible cash, that can pay bills for a while. (yes I know this losses money long term but it is a safety net).
Following this I ensure I have savings in some low risk items, such as Bonds, REITS and Funds.
Then I have my Shares money to invest in individual shares, but this is very volatile.
Perhaps (and this is speculation), William is not ok with having shares being held, whatever he feels the company has the potential to do, and he would prefer low risk investments.
Perhaps he is using it to help a family member pay of there mortgage, or buy a home for a Child who can't get a mortgage (and saving stamp duty now is a big saving)
There are a multitude of reason that this transaction could have taken place which don't reflect him thinking the shares will tank, but are to do with his personal circumstances and risk views.
Lets see what news we get on contracts production and sales and decide ourselves then