Buyers Building, page-16

Some more Negative view point on the opts ....now the fact is say if you what a good position of RMS stock and you don't mind the risk nothing wrong with buying the opts aka

500k RMS @15c =$75,000
500k RMSO @4.5c=$22,500 (ex price 12c =$60,000 AUG 1st = 106 days away
(interest cost to borrow 60k=$1,071 for 106 days @6%)

Now if RMS is 18c+ by or before AUG 1st (very likely IMHO)

the guy holding 500k RMS worth 90k margin 15k =20%
holding RMSO worth 30k margin $7,500 =33%

So your better off by 13%

Now comparing apples to apples you invest the same amount of money aka $75,000
you buy 1.67mill opts RMS gets to 18c before AUG = $100,200 ..25,200 margin ...$10,200 better off

Off course Gold crashes RMS goes to 12c before AUG you lose all your $22,500 if you brought the same amount of heads your paper loss is $15,000