ECT 20.0% 0.2¢ environmental clean technologies limited.

options leverage

  1. 665 Posts.
    for the first time, based on early pre-open estimates (6.1 heads, 4.2/4.3 tails), the gulf between options and shares has reached the maximum point since the options listed.

    it seems simple to me - given there is still over 4.5 years on the oppies, why wouldnt you buy them over the shares at this mismatch level

    for $10,000 you can buy 164,000 shares
    for $10,000 you can buy 235,000 options - which are as close to shares that can be given the time decay is irrelevent (43% more)

    or, to put it another way, you can get the same exposure 31% cheaper if you buy the options

    seems simple to me
 
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