Option you convert @3c paying additional $3000 Option convert to heads total price =initial $2300 + $3000=$ 5300 you lose on option 5300-1300 =$ 1300
else if,
SP @ 9c=$9000 you gain on heads 9000-5300= $3750 Option you convert @3c paying additional $3000 Option convert to heads total price you paid =initial $2300 + $3000=$ 5300 you gain on option 9000-5300= $3750
so my point is if Option price + Strike price is = current share price at the time of purchase and as long as share price is above the strike price at expiry, owing option or heads is same risk in terms of $ value for long term. but potential to buy more shares with a given capital at present. Hence why options generally needs to trade with premium but yesterday was exception and good value to purchase.
Please correct me if my understanding is wrong.
AVZ Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held