AZL General Discussion, page-3435

Options are simply a numbers game
AZLO options are technically a call option - which gives you the right to purchase the share at a pre determined price within a pre determined time.

FYI: There are also Put options which do the opposite ( right to sell) but these are not as common and are generally written through a broker.

AZLO example

Share Price .10 cents
Option Price 2.8 cents

assume new share price 18 cents
assume new option price 7.5 cents ( in the money value 6 cents plus time 1-2 cents)

profit on shares 8 cents or 80 %
Profit on oppies so price 7.5 cents - profit 4.7 cents or 167%

generally when the price is going down the loss is also accelerated.

Try doing the sums if the share price is 50 cents