for myself personally when looking at buying a heads or option in a particular stock it is very much a question of time and leverage.
In the case of WLF/WLFO I would ask myself the following question.
The options are exercisable in Sept 2012 so 18 months away.
Current price is around 0.42 for the heads so if you paid the asking price of 0.24c for an option then you are effectively saying to yourself that you believe the price of the WLF fully paids will be in excess of 0.46c in Sept 2012.
The options generally follow the fully paids with an ever decreasing premium (which is currently 0.4c)as the time of exercise draws closer.
In the case of WLF i would expect that around Sept 2012 (barring any drastic market shocks in general)the price of the stock would be well in excess of the 0.46c required.
The big advantage in the options is that you are able to(in this particular stock)roughly double your exposure to any increases(or decreases!!) in the stock,for the same monetary outlay.
Whether 0.24c is paying too much I personally think not given the story but I am a sit and hold type of investor and I do not have the time to day trade the available arbitrages that occur daily in the market.
Personally if I bought at 0.24 and saw them at 0.19 within the week I would not lose sleep as I believe in the current market trend and in particular the future of WLF/WLFO.
I currently hold both the fully paids and the options .
Basically going the options way is maximizing the leverage of your investment in any stock as long as you are comfortable with the time remaining prior to exercising them.
Good Luck
No investmestment advise intended in the above please DYO Due Diligence.
WLF Price at posting:
40.0¢ Sentiment: Hold Disclosure: Held
