qol rides again, page-6

re: qol rides again 23.7% today, 50% week Yes ROSCO, this is very positive - these options are worthless unless the shares hit 30c by January. And you only break even when they get to 38c, So whoever is buying (I bought options at 2c) is confident the share price will be well over 38c. By my calculations, the options (at 8c) are a better buy than the shares (at 24c) only if the share price reaches 46c or more before January. If you buy (say) $10,000 worth of shares at 24c and they get to 46c you make $9,166 profit (less brokerage). If you buy $10,000 worth of options at 8c and the share price gets to 46c, you can convert the options and sell the shares and make $10,000 profit (an extra $833) If the share price gets to 50c, you make an extra $4,166 from options compared to shares.
If you expect the share price to be less than 45c before january, it is better to buy shares. For example, if the share price gets to 40c, then you'll make$2,500 on the options, and $6,666 on the shares.
Of course, these figures change as the share and option prices change.
At current prices (24c for heads and 10c for opptions) the options will outperform the shares if you wait till the shares hit 52c (which has to happen before the options expire of course).
As I said earlier, the fact that someone is snapping the options up at 8c is a very positive statement.