Oppies equal opportunity, page-41

OK so you hold 1m options currently
You sell then for $18000
you borrow $12000 to buy 1m heads........in 3 years time you have paid 3000 in interest they owe you
$33000,

You hang on to the options you have now, exercise in 3 years at a cost of $32500, plus what you paid

Still the same maths

I am an options fan, but sometimes people get the "gearing" slightly wrong and buy on "excitement and emotion" not on numbers...which is really what it is all about IMO

Options are better when interest rates are higher of course, but we have low rates currently

When in the money, different game, for example I have GLAO which are in the money as the strike price is 1c.
The heads are at about 14 the oppies at 12.5 !!, 1.5c under the heads (with a 1c strike price?), and the (about) 10% gearing on top

As always DYOR