Lately there have been a slew of aussie exploration companies issuing entitlement options to shareholders as a sort of loyalty enticement. The latest is Carnavale Resources (CAV.AX). If you own the shares on or before the 7th of November this year, you'll be entitled to purchase 1 option with a strike of 20c and expiry in June 09 for 1c each. Carnavale jumped 6% today on the news, but it's my opinion that this run will continue up until the ex-date which is the 31st of October. This has happened a few times in recent memory with NTU.AX being a good example. In my opinion the best way to play this is buy the CAVs now and sell out the day before they go ex as traders rush to cash in on the $1.40 per share intrinsic value you are getting for 1c. Given that CAV is in the Iron Ore space, which has been running really well lately, this trade makes sense to me.