gdno - multibagger, page-9

josue,

Forgive me if you already know this but right now, the FPOs are better priced than the options. You can buy one GDN for 15.5c or a GDNO for about 4c. The GDNO gives you the right ("option") to purchase a GDN share for 20c. For that one GDN share you will pay a total of 24c if you buy options and exercise them.

Why would you do this if you can buy GDN for 15.5c and save 8.5c per share?

As I wrote before, buying out of the money options so close to expiry is a very high risk play. You need to be confident that the FPOs will trade well above the exercise price over the next 8 weeks or so. Perhaps they will, but in this fickle market, the price is more likely to fall back than keep surging ahead.