Options are good for leverage, they’re riskier but can give significant return. 40000 @ 10c as what Dave has done is $4,000.
The options, especially those already in money one and still have long expiry date, should move in line with the share price.
Let’s say in the next month, WGB share appreciates by 10c.
If you spent $4000 buying WGB today, you would have roughy 1568, so after that 10c appreciation, it’s now worth $4147, a nice 3.6% gain.
If you buy WGBO, like Dave did, that 10c appreciation potentially might also move WGBO by roughly the same amount. So at 20c each, it’s worth $8000. A great 100% gain.
Of course it’s also riskier if the share price goes down. Unlike the share where you might just want to hold during the downturn, WGBO has expiry date, so if share price is lower than the option exercise price, the koi closer it’s to the expiry date, the worthless it becomes. Potentially worth $0.
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