if you believe the company's share price has plenty of upside, and you don't mind risk, I think the options are a good bet....we have over 2 years to expiry by which time we will know the outcome of the scale-up of plant (we'll know that in 5 months) and assuming it goes well, we will also probably have rolled out further plants. Then there is silica. Now if none of these things happen the options will get crunched. But so too will the shares, to a lesser extent. The options enable leverage but you still can't lose more than your initial outlay so in that respect they differ from some other derivatives.
I have bought options on the basis the underlying share price can achieve > 50c at expiry but I probably have my fill now. For risk averse options should probably be avoided but so too should microcaps! I also bought ordinary shares.
MHM Price at posting:
37.0¢ Sentiment: Hold Disclosure: Held
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