how do the mygoa options work?, page-4

Think of the option as an opportunity to purchase a share at the exc price.

The exc price on MYGOA is 5 cents.

So if you buy the option for 9.8 cents you have until the expiry date to pay that 5 cents and have your MYGOA converted into a MYG.


So effectively you are paying a little extra in the long run for the same thing, but you expose yourself to greater potential profits/losses as you can purchase more MYGOA than you can MYG for the same money.

If you think MYG will be 30 cents at some stage then if you bought 10,000 at 13.5 you would of made a profit of $1650.

For the same initial outlay of $1350 (the cost of 10,000 MYG) you could of bought 13,775 MYGOA giving you a hypothetical profit of $2273 (in the 30 cent MYG scenario)

The value in options is the extra leverage.