Will try and explain the theory as I haven't looked what the option or strike price is....
Say you have conviction the stock will go to 30c.....you buy the stock at 17c.
If you have the same conviction but buy options, for the same outlay as you were going to spend at 17c you can buy many more options. If the stock does rise to 30c, you'd then pay the strike price to convert your options "knowing" the share price is 30c, not guessing as when you buy the stock at 17c. (if it's gone down you probably wouldn't convert)
And you now own more of the stock.....more profit
Very simplistic way of looking at I know, but, think of it as leverage to buy more
Will try and explain the theory as I haven't looked what the...
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Last
1.6¢ |
Change
0.000(0.00%) |
Mkt cap ! $71.58M | |||
| Open | High | Low | Value | Volume |
| 1.6¢ | 1.6¢ | 1.5¢ | $6.28K | 410.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 70 | 10941733 | 1.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 1.6¢ | 8795059 | 6 |
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| Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
| AZL (ASX) Chart |