MGT current has two quoted optionsThe first being $MGTOC &...

MGT current has two quoted options

The 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 money

By 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 wrong

Hopefully this makes sense.