btv-option mispricing, page-2

  1. 77 Posts.
    Hi Seary.
    What you seem to forget that the option has lower cost and time factor build in it. So for your $1000 you can get 10,000 shares or approx 30,000 options. I do not when this option is due to expire but if the share rises to say 30c anytime soon you will have 200% profit on the shares or up to 1000% on the options depending on the term of exersize and expiry date. Of course if the share does nothing for the life of the option you have done your money - 100% loss. With shares you still have them and can wait for that price rise one day.
 
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