That is a rubbish justification for buying the options.
For a start, you have forgotten theta, so tails will be trailing heads by 2.5 at expiry..... not 1.4 as per your masterful calculation (thanks for the lesson in options markets and understanding, not).
Thus, the rewards for buying tails now become, at expiry, 3.5% if SP is x2, 15% if SP is x3, and 20% if SP is x4.
If share price isn't at least double, then you lose.
The extra 15-20% potential gain is based on the punt (which is looking more unlikely by the month to a lot of us) that this is a definite 3-4bagger between now and then.
The risk:reward is crap.
The justification isn't there for serious investors.
Amateurs however love to lap it up because they think it makes them look smart (until they try and explain it to you).
- Forums
- ASX - By Stock
- SPX
- it's just the beginning for Cirralto!
it's just the beginning for Cirralto!, page-19834
-
- There are more pages in this discussion • 512 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SPX (ASX) to my watchlist
|
|||||
Last
0.7¢ |
Change
0.000(0.00%) |
Mkt cap ! $30.27M |
Open | High | Low | Value | Volume |
0.7¢ | 0.7¢ | 0.7¢ | $21.01K | 3.002M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 14754792 | 0.7¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.8¢ | 2773812 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 14754921 | 0.007 |
18 | 10568275 | 0.006 |
18 | 13750000 | 0.005 |
6 | 18650000 | 0.004 |
3 | 1850000 | 0.003 |
Price($) | Vol. | No. |
---|---|---|
0.008 | 2773812 | 4 |
0.009 | 3754787 | 7 |
0.010 | 8790134 | 15 |
0.011 | 4983514 | 5 |
0.012 | 3671718 | 6 |
Last trade - 15.53pm 03/07/2024 (20 minute delay) ? |
Featured News
SPX (ASX) Chart |
The Watchlist
TON
TRITON MINERALS LTD
Adrian Costello, Executive Director
Adrian Costello
Executive Director
Previous Video
Next Video
SPONSORED BY The Market Online