nkp vs nkpo, page-5

quicksilver

you missed the following,

assume heads 1.75, then your comparison, must assume that the options are trading 35c under that, so 1.40.

Re-do your numbers on that basis.

Next, with the heads, you have 12m cgtr in place, the options carry none.
So if you were to sell, either at that point, half your heads profit, goes to your back pocket without the tax man gettign a sniff, and then he adds the other half to your taxable income,etc. consult your own tax advisor.

Next, dont know what margin lending you guys use, but mq prime, will let me buy 10,000 heads, by using 5500 of my money and 4500 of theirs.

Now lets say they double in price,

So when i buy heads, and they increase in price, the 4500 margin part, increases to 9000, and the 5500 part increases to 11000. And then, i can buy more stock with the extra 4500 inlfated from the margin section, and possibly buy even more NKP.

So heads, come with capitol value that can be leveraged off, options, generally have no margin, the only way to get that margin from such an account is to sell them, and convert them to cash, with is 100% margin. (and get taxed)

Just a thought.

I hold both heads and oppies,

simple, i will hold heads 12m+ and use to convert the oppies with.

Then hold oppies converted, 12m+ and rub my hands together,a nd the tax man hasnt bent me over.

I have orders in market for more of both.

When the upside is several bucks, both win, it just depends how you use your capitol, and how you want to be treated tax wise.

For mine, i agree, the oppies are better value, at 1/3.

But at 1/2, i can buy as many heads with margin lending, and benefit from their capitol. (as well as other rights that may be offered later)

cheers