AZL 5.56% 1.7¢ arizona lithium limited

Options are simply a numbers game AZLO options are technically a...

  1. 199 Posts.
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    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


 
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