For those unsure of how oppies work or the pros and cons, here is something I prepared earlier, on the DT thread this moirning
acreage1 I have always been big on oppies, ever since the ssno early days They are no different in many respects to heads, as long as you don't convert and watch the heads price
Greater leverage up and down At this level though, oppies are a no brainer as less downside but more upside % risk / value
Some number scenarios based on $10k invested in both (The higher the heads go the better the gains in oppies):
Heads 3.7 $10k Oppies 2.6 $10k
Heads 5.7 $15.5k Oppies 4.6 $17.7k
Heads 8.7 $23.6k Oppies 7.6 $29.2k
Heads 15.7 $42.7k Oppies 14.6 $56.1k
Did this quick, so should be right but happy to be pointed out otherwise
You can see the % gain increases significantly "as long as" the story is good and heads go up
ANP is a bio stock, and usually they crash back after news. ANP Hasn't though, which begs the question - do they in fact have something the market values much higher than the sp today - only time will tell of course
ANP Price at posting:
36.0¢ Sentiment: LT Buy Disclosure: Held
