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1.9¢ great southern mining limited

oops, sorryIt seems I can't add up, or rather can"t...

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Lurcher.A

410 Posts.

43

08/07/20

07:42

Post #: 45711141
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Originally posted by deeplyinvested: ↑

Correct me if I am wrong I am still new to Options.
Im just comparing the heads and the options to see what kind of returns there are using simple numbers for my sanity check. Note I am using past prices:
If buy GSN straight up at 10c and I have $1000 to spend I will get 10,000 shares.
If i buy GSNOA at 5c with the same $1000 I will get 20,000 shares with a strike price of 5c (pay an additional $1000 to convert to shares right now but why would you!)

Say at expiry in 2022 later down the line GSN is at 50c:
My original 10,000 shares of GSN will be worth $5000 for a 5x return. Originally paid $1000.
My 20,000 options of GSNOA exercised at 5c (so pay $1000) to receive 20,000 fully paid shares of GSN which will be worth $10,000 less the strike cost = $9000 for a 9x return. Originally paid $1000.

Can someone please correct me if I have made an error in my understanding of GSNOA.

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oops, sorry
It seems I can't add up, or rather can"t subtract
bugger
your original choice of buying 10,000 full shares at 10c puts you $4,000 ahead
your 2nd choice of buying 20,000 options at 5c and converting them to full shares puts you $8,000 ahead.
That's a $4,000 advantage, NOT $3,000
somewhat embarrassing, sorry

GSN Price at posting: 16.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 1.9¢		Change 0.000(0.00%)		Mkt cap ! $16.08M

Open	High	Low	Value	Volume
1.9¢	1.9¢	1.9¢	$2	83

Buyers (Bids)

No.	Vol.	Price($)
1	990000	1.8¢

Sellers (Offers)

Price($)	Vol.	No.
1.9¢	1229370	3

View Market Depth

No.	Vol.	Price($)
1	990000	0.018
5	777829	0.017
2	143750	0.016
4	1035000	0.015
1	750000	0.014

Price($)	Vol.	No.
0.019	1229370	3
0.020	1012016	5
0.021	860000	3
0.022	829000	2
0.023	12500	1

Last trade - 10.04am 01/10/2024 (20 minute delay)

GSN (ASX) Chart

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