looks like a nice build up for afternoonn run, page-5

Defabstar,

"Why any options trade at a discount always astound me. Instead of buying a set number of ordinary shares, you can buy the exact same number of options instead, preserve capital and still get the same $ value profit/loss, if the share price goes up/down."

Options carry a risk, and the holder needs to be compensated for that risk. I have lost money on a few options as the exercise price meant they were under water - i.e. worthless. I have 100,000 APZO left that I cannot sell at any price, although I was able to offload most of my holding before they collapsed completely. If I had put the money into APZ instead, I wouldn't be showing any loss at all. Gearing works both ways!

Having said all that, these options are in the money and it is inconceivable (to me!) that they will fall into negative teritory i.e. the share trading at or belwo 3 cents. There is still the cost and risk of exercise though. Between paying for the shares and getting them, the sp could drop and leve you out of pocket which might only be a big deal if you had stretched yourself to afford the exercising.

Cheers,

Keith