Do you put any put any thought/mathematics into your comments? Lets base it on 10000 options.
Your idea:
- 10000 options sold at current price of 28c. If I sold them my profit on these would be $2700 ($2800 - the $100 for the options). I will therefore pay tax of around 1350 on this next financial year.
- I will then go and pay 5800 (58c current price) for purchasing 10000. If I then sell those shares 2 years later for $10000, I will pay tax on on (10000-5800)/2 = $2100. Tax at 50% will be 1050.
- So all up I would have ended up paying tax of 2400
The path i have taken
Converted 10000 at 30c ($3k) and paid $100 for the options. Lets say I sell those in 2 years at 10000. (10000-3000-100)/2=3450. At a tax rate of 50% I will pay 1725.
Looks like the 2nd option is 675 better off.
HZR Price at posting:
56.5¢ Sentiment: Buy Disclosure: Held
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