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09/08/16
22:24
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Originally posted by TripleTop
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Good point, but remember there is a two year period to expiry.
What about buying options at 0.9c. In that case to double your money (with the options moving to 1.8c) would probably take a SP (heads) of 6.5c. Heads are still winning by about half a bag.
What about if we talk about 3 or 4 bags:
Let's try 4:
Options bought at 0.9c today would need to reach 3.6c for 4 bags. I'd say a SP (heads) of 8.5c would do it (if sufficient time premium remaining)
Options are now ahead but only by about half a bag.
I think the options present a decent leverage opportunity given the timeline of 2 years to maturity.
2 years is a long time in the SAAS space.
Run some calculations on a 20c share price (Heads) which is easily possible in 2 years and options are miles ahead - 15 bags to 8.
I guess it depends on your view of the possible share price growth during the period until expiry.
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Absolutely re heads at 20c in 2 years time ;-) Watch this space ;-)
We are on the same page Triple Top ;-)