Leverage GK! Say you only have $1,000 to invest, you can buy 50,000 heads @ $0.02 or 66,666 oppies @ $0.015. Say the share price went to $0.20, your $1,000 worth of heads would be worth $10,000 but your $1,000 of oppies would be worth $12,333 based on paying the $0.015 exercise and then selling the resultant heads at $0.20 (you would probably get a bit more than this due to duration value of oppies). The higher the share price goes the greater the leveraging effect of the oppies. For people who are bullish on the stock and prepared to take on both the option premium & duration risk, the leverage provided by oppies can be very attractive
RR1 Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
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