Heres my calc if you convert options... (using ROUGH tax figures...

Heres my calc if you convert options... (using ROUGH tax figures for a person earning 50k a year)

100k buy 9c heads , selling at 1$ = $1111111
Profit is $1011111.. after tax of 20% = $808888

100k buy 0.055 options, selling at 1$ = $1818181
Profit is ($1718181 minus $90909 exercise price)= $1627272
After tax of 40% = $976363
40% tax because you don't qualify for CGT discount

Basically you make a mere extra 17k . My advise is if you are with options... sell them as options after a year as u will make an extra 500k after tax.


For selling options without converting,
(9c-5.5c)/9c = 38.8%

you are increasing your exposure to MYG SP increases at 38.8% while still having to pay a premium of 16.67% and coming up with 100k.

(Now for example if the options were only 0.005 and exercise price is 0.100 (Same price of 0.105) then it is worth it as u get 94% extra exposure. You only need to put down 9k$ to have the same exposure... thus leaving you with 91k free capital. I understand you get more for your buck if you went for MYGOA but if im going for options i want to be a lot more leveraged for the risks involved or no premiums.
(rough calcs only, not checked for mistakes)