Yes, that is true, BUT if the shareprice take a dive (horrors!, but it happens) and say halves, your options would be (almost) worthless and you would have lost 100% of your initial investment.
Just be aware, that options produce a 'gearing' of your investment that will magnify profits AND magnify losses.
The time 'to exercise date' also has a value as you do not have the capital needed to exercide the option tied up and it can be otherwise invested.
Calculating a 'fair value' for an option can be quite a complex process.
Joe.
Holding BLMOB.
Yes, that is true, BUT if the shareprice take a dive (horrors!,...
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Mkt cap ! $4.150M | |||
| Open | High | Low | Value | Volume |
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| Price($) | Vol. | No. |
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