LRVO, page-179

This all depends on your outlook . . I used the following strategy several years ago with a tech company and ended up owning about 800k shares where otherwise I would have had maybe 400k.

lrv is much risker as there is only a 3mth runway until option expiry vut equally . . There is a lot of amazing news anticipated in that time that could be major price re rate catalysts.

lets say i had $100k to invest at current prices

I could buy 250,000 lrv at 40c
or
I could buy about 670,000 lrvo. (Challenge with lrvo is there is little supply now but let me just run this scenario so you understand)

If . . I had a very confident outlook for lrv over the next two months i would have over 2.5 x the exposure buying lrvo versus lrv.

if lrv got to $1 by the end of November (which is very feasible with what will transpire between now and then).

your $100k lrv holding would be worth $250k
your $100k lrvo holding would be worth approx $470k.

net return almost 2 x if you just sold the oppies at this time

or if you want to convert options and hold shares you would need approx $200k to do so . . This would require you selling approx 290k options at 70c (presumed option price if heads are worth $1.

so . . You end up with 380k shares versus the 250k shares you would have if you just purchased the shares with your original 100k..

This ratio grows further in your favor the higher the share price.

If lrv reaches $1.50 by end of November . . The above strategy would have you holding over 500k shares . . 2 x what you would have by buying lrv at the outset.

If your 2 .. 3 . . 5 yr outlook is confident imagine holding 500k shares versus 250k . .

Clearly this strategy has significant risk if the share proce does not appreciate and especially if shares fall below option strike price but . . If you have a very positive outlook this aggressive strategy can reward handsomly.

not financial advice . . Just highlighting the leverage that can be gained and the maths that works with the options.