500klm, 150m and 9.5% organics means what?, page-30

Judging by Fridays price action I bet a lot of holders now are feeling Monday can't come quick enough. We've had a quick retrace to 16.5c on Tuesday and by Friday closed at the highest since the JV deal, and on pretty decent volume too. A very bullish sign. Could even be another leaky ship. It's not unreasonable to hope to see 20c on Monday.

Those options are looking very attractive at the moment as they are already in the money (disc: holding heads and options). If the sp can reach 50c by option expiry date of 31 March 2013, which is not an unreasonable target, then options can make you about 2.5 times more money than heads at current sp for the same amount of capital outlay. It probably only needs Surprise to come up with the goods and we're pretty much there already, not to mention numerous other high impact developments going on by then.

As an example:

100,000 heads will cost you $18,500.00 at current sp. If the sp is at 50c you will make $31,500.00 (50c-18.5c x 100,000).

For that same $18,500.00 you can buy 276,000 0ppies at current price of 6.7c. When the sp gets to 50c you would make $75,348.00 (50c minus 16c strike price and 6.7c cost of oppies x 276,000). As the oppies move deeper into the money the inherent risk attached to it diminishes. Options are good only if you have a conviction that future sp will be higher than what it is today, therefore DYOR.