But how sure you are that option will be trading at 8.5 cents...

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Smacky1705

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30/08/22

16:17

Post #: 63412898
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Originally posted by watchitgonow: ↑

No offence but let me break it down for you what Spinvest means.

Lets assume RML hits something and price rises to 10 cents. As a listed option the option will trade at around 8.5 cents given you need 1.5 cents to convert it to a share (if you chose to do so) but you can also just sell the option for 8.5 cents to another investor.

So if you put $10k into RML at 1 cent or 10k into RMLO at .2 cents what would be the better result?

10k in RML would give you 1mil shares which you sell at 10 cents to get $100k, great result
10k in RMLO would give you 5mil options which you sell at 8.5 cents to get $425k, even better result, which is what Spinvest is talking about

Now if the shares only go to 2 cents then you get 20k for RML
whilst for RMLO you probably get .8 of a cent (given the time value and the fact 1 cent RML is trading .4 RMLO) so you'd get 40k for RMLO

Now if it goes ballistic (which we all hope) and goes to 50 cents

RML is a great result at $500k
RMLO is amazing at $2.5mil

The power of option leverage, that's all Spinvest is referring to

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But how sure you are that option will be trading at 8.5 cents when heads will be at 10 Cents?

RML Price at posting: 1.2¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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(20min delay)
Last 7.5¢		Change -0.001(1.32%)		Mkt cap ! $93.92M

Open	High	Low	Value	Volume
7.6¢	7.6¢	7.5¢	$15.06K	198.4K

Buyers (Bids)

No.	Vol.	Price($)
3	109249	7.4¢

Sellers (Offers)

Price($)	Vol.	No.
7.6¢	179962	1

View Market Depth

No.	Vol.	Price($)
1	129611	0.077
3	52900	0.076
1	15229	0.075
3	109249	0.074
4	222616	0.073

Price($)	Vol.	No.
0.072	81210	1
0.075	81263	3
0.076	200000	1
0.077	16000	1
0.078	38100	1

Last trade - 10.00am 31/07/2025 (20 minute delay)

RML (ASX) Chart

But how sure you are that option will be trading at 8.5 cents...

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But how sure you are that option will be trading at 8.5 cents...

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