MGT current has two quoted optionsThe first being $MGTOC & $MGTOD. Both have a 5c strike price while $MGTOC is set to expire 31 May and $MGTOD Is set to expire on the 29th of October.The current share price of $MGT is .053, closed on 52 week high today on solid volume$MGTOC is trading at $0.006$MGTOD is trading at $0.019, nearly 3x the price as $MGTOC with the same strike price.I know there are various ways at valuing options, each having its own merit so I won't go into details about the valuation technique but I feel like $MGTOC is definitely worth a buy here at these levels.Even though the options are about to expire, they are in the money, so you will not lose your initial investment if you convert them.$MGTOC offers significant leverage and much more gain, with the same amount of risk as to the heads. By reasoning behind this is as follows, assuming that you plan on converting your options if the options are not in the moneyBy buying $MGTOC, you are pretty much-buying committing to buying $MGT at $0.056. (0.006 + strike price of 5c)If MGT increases by ~25% to $0.066. The $MGCOC will be valued at $0.016, around 2.7 times the current $MGTOC price of $0.006, thus providing much more return for the same amount of risk. (Only if you plan on converting)Now lets say MGT decreases by ~25% to $0.04, the $MCGOB options will be out of the money, but that regardless since you plan on converting anyway. After converting, you would of paid $0.006 (Last price) plus strike price of $0.05 equating to a total price of $0.056. Once you convert, there will be a ~29% unrealised loss.Thus, for the same amount of risk, you are able benefit much more, than what you lose. For 25% of risk, you can either gain 270% or lose 29%.
Please feel free to correct me if I'm wrongHopefully this makes sense.
- Forums
- ASX - By Stock
- MGT
- $MGTOC vs OD thread
$MGTOC vs OD thread
- There are more pages in this discussion • 43 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MGT (ASX) to my watchlist
(20min delay)
|
|||||
Last
26.0¢ |
Change
-0.025(8.77%) |
Mkt cap ! $25.59M |
Open | High | Low | Value | Volume |
28.5¢ | 28.5¢ | 26.0¢ | $7.902K | 28.74K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 41399 | 26.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
27.5¢ | 19994 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 41399 | 0.260 |
2 | 36999 | 0.255 |
3 | 90696 | 0.250 |
3 | 34991 | 0.245 |
3 | 23332 | 0.240 |
Price($) | Vol. | No. |
---|---|---|
0.275 | 19994 | 1 |
0.280 | 13432 | 1 |
0.285 | 411 | 1 |
0.290 | 80279 | 3 |
0.300 | 60653 | 4 |
Last trade - 15.15pm 29/03/2024 (20 minute delay) ? |
|
|||||
Last
27.0¢ |
  |
Change
-0.025 ( 3.57 %) |
|||
Open | High | Low | Volume | ||
26.0¢ | 27.0¢ | 26.0¢ | 4308 | ||
Last updated 14.08pm 29/03/2024 ? |
Featured News
MGT (ASX) Chart |