Hi Arminius, (ALSO Pelagic and Goldbrick - comment at the...

Hi Arminius, (ALSO Pelagic and Goldbrick - comment at the end)

The options expire end of November this year (08)

Their exercise price is 2.5 cents. That is how much you have to add to your buying price to give you the total cost to you, should you choose to "exercise" them.

"Exercise" means to convert them into fully paid, ordinary shares that can then be traded as the "heads" or "normal" shares.

If you choose to not exercise them you can sell them as options the same way you bought them. BUT, only up to the exercise date. AFTER that time they expire - have no value and cannot be converted.

The closer the exercise date the more risk with oppies and so the price you can get for them will possibly go DOWN.

That is UNLESS the HEADS PRICE IS UP. If the heads are selling at or over 2.5 you are "in the money" and they are good value to convert.

Let's say you pay 0.5 for your oppies, the price you actually pay when converted is a total of 3 cents. 3.5 cents would put them on about the same profit level as buying the same value in heads now.

HOWEVER, the real win with oppies is if the price goes well over the 4 or 5 cents. BECAUSE YOU CAN BUY SO MANY MORE NOW WITH LESS OUTLAY. But you do take the risk of the heads price NOT getting where you expect or want it. Oppies are less easily sold if you want out.

A lot depends of you research to date and your risk taking.

PELAGIC:

Thanks for adding me to the list...cool.

GOLDBRICK:

You ARE welcome to keep posting - it is a free world. And you do have an intriguing commentary. For someone like me who likes facts and analysis it wears thin, but it takes all kinds I guess :)

Cheers all