Chart Chat, page-132

I will use a simple example below to prove the point.

If a person had $1000 to invest in CTM earlier this week and believed it would be worth 1.5c before the end of April, they could either:
1) Buy 100,000 CTM @ .01
2) Buy 333,333 CTMOA @ .003
3) Buy 200,000 CTMOB @ .005

Then theoretically, if the SP reaches 1.5c :
1) CTM worth $1500 or 50% gain
2) CTMOA instrinsic value .005 worth $1666 or 66% gain
3) CTMOB instrinsic value .005 worth $1000 or 0% gain
(I use the instrinsic or actual value as it removes any arbitary time based premium and offers a pure comparison)

The current SP at 1.7c or actual returns:
1) CTM 1.7c worth $1700 or 70% gain
2) CTMOA instrinsic value .007 worth $2333 or 133% gain
3) CTMOB instrinsic value .007 worth $1400 or 40% gain

As can be seen the SP didnt have to reach 1.7c for the OA's to be a better proposition than the OB's or heads but rather any price above 1.4c