Currently NAK is waiting to see if the USCofE is going to allow them to go with their Pebble Creek Project. This project has been on hold for a few years now. They have done the cost analysis of the potential outlay in the ground. So was looking for a cheap way to play this "gamble". This is a gamble as if that project is not approved then would say it bankrupts the company. But here is the play and the way to make it a no cost play I will be using options.
Sell to Open November 19 2021 $.50 Put collect .11
But to Open January 21 2022 $.50 Call pay .11
Total Cash Outlay: $0.00
Max Loss: $50
Max Profit: unlimited
One could just buy the January $.50 call and the max loss would be the .11 they pay for the option and have no down side risk. But since this has been going on for awhile I am not sure when the USCofE will come back with an approve / deny. So that is the reason I am using the no cash outlay option currently. If under .50 on the November 19 expiry then you can either roll that to December and collect more premium. Same as with the December expiry. If over .50 then you can "call away" the shares @ .50 and have a position already in profit. Below is the risk chart out to the $2 level.