ASX the options give you more exposure for your money ie you can buy 100 000 options for $14 000 where as that would only buy you about 45 000 shares at 30 cents.
If you have a company that has a positive outlook options can be good value. Say the share price rose up to $1. You would expect the options to be 75c. If you paid 14 c for those options you have increased your money 61c, which is about 4.3 times. On the other hand the shares have increased 70 cents which is 2.3 times.
Therefore a $10 000 investment in options would be worth about $53 000 and in shares it would be about $33 000.
Of course with a company with a negative outlook they can be bad. Only hold options in companies you have faith in.
MNM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
