ops or heads, page-3

Honestly I do not think it really matters, both are going to be flying, or we wouldn’t be here right?

What I like about the options though is that I can own more of them for the same price, and have the OPTION of exercising them at some safer stage down the track. I am sure if the heads are worth $1, I will come up with the 15c each required to exercise! Lol

Same with FDL. Should almost be mandatory to have some of these, ‘just in case’. But I decided to get FDLOA because I could get 3 times more of them without putting much money out (after all, these guys could be sitting on zilch). Only problem is these ones expire in Sep 2008. Basically I did it ‘just in case’ something happens in the next 3 or so months. I can watch the heads price, and if by March or so next year they are flying (maybe due to some shock announcements, drilling commencement, interim results etc), I can sell FDLOA for a profit, or I can exercise them and turn them in to heads. It might be that the 10c exercise price is cheap compared to the heads price by then, taking the risk out of spending the money. To get a decent bag of FDL I would have spent more money then I cared too, but could cheaply hold a decent bag of the FDLOA. If they stagnate or flop, I have spent less, but still maintained the same exposure.

I like having the option of spending some more money at a time when hopefully the heads price makes it an easy (only) decision.

As I have said before, I haven’t traded in options before, but these are the reasons I liked the options in both these companies.