bargain oppies, page-28

There is always some risk it'll expire below the strike price ($0.0625 I believe), however I believe it is extremely unlikely given PTX's assets and pipeline.

Therefore I see it as a way to gain greater exposure to PTX if you are currently cash poor. Using 10c as the share price and 5c as the option price as it has been we can do some quick maths.

Lets imagine you choose to invest $1,000 now; you could get

10,000 PTX shares @ 10c
OR
20,000 PTXOC @ 0.05

Then imagine PTX goes to $1 by March 2023 - Just to be conservative

You now need to pay the strike price to convert each option into an actual share = 20,000 x 0.0625 = $1,250

Now let's look at our positions:
PTX share scenario
Paid: $1000 today
Received: 10,000 shares
Value at $1 per share : $10,000
- initial expense ($1000)
Profit: $9,000

PTX Option scenario
Paid : $1000 today and $1250 by March 2023
Received: 20,000 options
Value at $1 per share once converted: $20,000
- initial expenses ($1000) and conversion $1,250 = $2,250
Profit = $17,750

The takeaway - Whilst in this scenario the PTX shares have a slightly higher % return, by using options we have managed to give ourselves a greater dollar value in return; which at the end of the day is all that matters. One caveat is to make sure that for the options you purchase today that you can afford to pay the conversion price in approximately 2 years (March 2023) or they will expire worthless!

So loading up on options is currently my line of thinking, but I'm still relatively new to stocks so if anyone can provide some clearer insight that would be greatly appreciated.

Sentiment - Sell the house and buy PTXOC