mpo vs mpoa, page-2

cumulus...

lol...nice try.

With over 5 months to go before the options expire, I put to you the head stock will not be anywhere near 11c.

I suspect there is no malice in your post...I fear you simply do not understand options, nor the leverage/insurance/volatility equation that goes with them...nor indeed obviously, the value equation for the company itself.

I currently rate the options a good buy anyting under 6c based on 11c today on the heads...and I would buy more if I was not already fully exposed...and then some!

There is much more to an options buy than just straight-line price per price comparisons to the heads...as a simple example, you can buy 1m shares for $110,000...or you can buy 1m options for $38,000 and keep the other $72,000 safe, or put it in other shares...or whatever.

Both investment will earn the same return for each point move in the stock (within reason), yet your downside is significantly reduced should the unthinkable happen and something implode along the way...which we all know can and does happen from time to time.

Via the options, your exposure and therefore total downside loss is limited to $38,000...but if you bought heads, your exposure and ultimate loss in a disaster is $110,000.

The benefits of buying options, many examples of which are similar to those given above, is measure in the level of premium the market places on them at any given time...in essence however, there is much more to determining an options value than simple technical and or fundamental assessment.

But that relates to market psychology...and that is another story all together.

Options...in fact any highly leveraged derivative script...is really not the domain of the amatuer...if you don't like, or don't understand options...I suggest you don't buy them.

Cheers!