Hi Seary.What you seem to forget that the option has lower cost...

  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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