Thought I start a thread about the options, a lot of investors are unsure how they work. They provide good leverage and I especailly like investing in them when they have a long expiry like AEVO have.
Exercise Price 2.5c
Expiry October 31, 2025 (3 years)
I'll give an example of the leverage benefits. Ill try and keep to whole numbers to make it easier. DYOR and there are assumptions being made for example not accounting for dilution.
$35,000 to invest
Could buy 1m heads at 3.5c or 2m options at 1.8c
Current MC circa $40m, if AEV can kick some goals and reach $200m MC in a few years then sp will be 5 x 3.5c = 17.5c
Options would then trade around 15c
1m heads x 17.5c = $175,000
2m options x 15c = $300,000
So for same investment of $35k, the options outperform by $125,000 which is significant.
AEV Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)