Josh,you need to take in to account the time decay factor of the...

Josh,

you need to take in to account the time decay factor of the options.

If the oppies were exercisable in the next month then I would say they are at a premium but considering there is over 2 years before you need to stump up the extra 5c then this needs to be considered.

If the share price is lets say 50c in Feb 2013 then the oppies will be worth 45c so using todays approx prices:

1) $10000 invested in heads at 8.2c = 121,951 shares x 50c in 2013 = $60975.

2) $10000 in oppies at 5c = 200,000 oppies x 45c in 2013 = $90000.

This is a 50% differential or an extra $30,000 more profit on the same investment.

( All projected SP are for illustration purposes only DYOR)

Cheers

Hallie