ckkoa, page-5

for some strange reason I disagree with both the above posters.

It is a simple process.

where do you believe the price of the head stock will be in 6 months time?
If the same then why buy either?
If lower then why buy either?
If up the options provide leverage at multiples of the heads.
The question is where will the stock be in 6 months time?

throw the dart and say 40c for head price in 6 months

lets work on head price currently 8c and option price currently 2c.

if heads are 40c in 6 months (5 times current price) then options would be around 30c (15 times current price).

So whilst there is time there is leverage. As time decay hits the benfit of the leverage diminishes and risk is higher.

Until the head price is above the exercise price the risk is also greater and time decay will accelerate.

As I already have the options I require I sincerely hope that everyone simply buys the heads now as the increasing head price will drag my options along exponentially :)

Oppies = high risk, high reward and more than 80% of the time don't finish in the money so caveat emptor