arlberg where is the leverage on 20c please? isnt that just...

arlberg where is the leverage on 20c please? isnt that just about the SP or am i missing something?? better to buy head right if only 1.5c in it?

Options are selling currently around 8c. Add 20c to that for exercise and its trading at the equivalent of 28c, that's a 6c premium to the fpo which is 22c.

But if the shareprice is going to go up, the options give much better leverage. If for example the fpo gets to 30c (+50%), the oppies will likely trade at 16c+ (+100%). You've just made double your money.

Too good to be true? Well yep, on the down side, oppies are alot less liquid so harder to get in and out of and easy to get caught badly on bad news. Also the same applies on the downside, your losses also magnify if say the share price drops.

For historical purposes just look at the shareprice on 2nd day of trading, CEL was 10c, CELO was 3c. Today CEL is 22c (120%+) and CELO is 8c (160%+).