G79 0.00% 2.7¢ goldoz limited

MUS share price, page-34

  1. 3,437 Posts.
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    I do agree, however caution should always be used in these situations.

    What if the SP doesn't get to 19c, what if it retraces to 4c or so? Currently the positive sentiment is driving a premium on MUSOA however flip it around and the OA price could go from 3c to 1c in a flash, so instead of loosing, say, 30% on the heads you've lost a whole lot more had you gone for the OA's. Now having said that you could "expose" yourself to similar risk/reward by spending less on the OA's, buy the same amount you would have with the heads and then put the money you've saved elsewhere, spread your capital and risk. Never go overboard on options as they can have a nasty sting, the liquidity can disappear before your eyes.
 
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