HAV 2.78% 18.5¢ havilah resources limited

please know this is a question and not advice i am not a option...

  1. 253 Posts.
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    please know this is a question and not advice

    i am not a option holder and i am not fully up to speed with options

    correct me if i am wrong but my understanding is

    say in the unlikely event that the SP falls to 20 c

    the 30 c options are out of the money by 10 c

    if the option holder does not exercise he loses 100 % of his investment

    but if he feels the company is sound

    and he exercises he incurs an immediate
    paper loss of 33 % which he may recoup on SP appreciation ?
 
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