Regarding the comment, "The advantage in options is that you can take a substantial position at a cheaper price." This is a little misleading. If you were to convert the options to shares, your total outlay would be $110,000. However if the share price is heading towards 0.5c or even reaches it, a new shareholder could purchase 2 million shares for a total outlay of $100,000 or possibly less, putting them in a better position than the person who bought options.
In the case of MGT, if you only had $10,000 to invest, you may be better off simply buying heads and riding the wave. For a single investment, your money is at risk either way, but at least with Shares you aren't time-bound like when buying options.
If you're new to investing, I would be careful buying Options, as most of the time, Options will expire and you'll lose your whole investment. This may be the case for the MGTOC options if we don't get to 5c soon. Unless you manage to trade them at a higher price than what you bought them for.
However, if you know what you're doing, options are great when a share price really takes off much before their expiry date. For example, if you only wanted to invest $10,000 by buying options; then if MGT were to jump to 10c a share, then you could exercise the options at 5c and sell for 10c making a quick capital gain.
MGT Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
(20min delay)