Ann: Application for quotation of securities - CDX, page-6

In answer to your question.

Options can provide amazing leverage in terms of the quantity you can hold and the proportional percentage gain you make on rises in the value of heads.

To go with that, you can lose ALL of your capital invested, even with a company that eventuslly makes it.

Ive done both in my time.

So the critical thing is to either get in and out early, which means simply trading the oppies. Or, only buy oppies where you are "confident" they will be "in the money" come conversion time.

With CDXO, its too late to play. Those of us holding can now convert to heads (currently 7c) at a cost of 5c per share. Whether that turns out good for us depends on what we paid for our oppies and what the heads are worth when we get them back from conversion.

Ive got oppies in being converted right now. 5c each is the conversion cost. The price I paid for them was actually negative due to some trading over the last year.
So as long as I can sell them above 5c, Im going to make money.

I cant afford to turn all my heads into oppies, so Im converting bit by bit and selling heads to pay for conversion. CDX/CDXO has been a very profitable investment for me. But dont forget with other options, Ive had them expire out of the money so lost ALL my capital invested, the ultimate investing crime!

As mentioned, its too late really to play CDXO. Liquidity required to play is long gone at this late stage.

If you want to learn and/or try playing an option can I suggest EUROA. Plenty of time on the clock and a fair chance of being in the money come expiry date. They are my only other option play at present.

Using play money or investing very small until you fully understand would be what many would suggest.

Good luck. LOTS to learn. Im about 10 years in at this point, to give you some perspective.

Would be good for others with experience to add to this.

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