RRS 0.00% 0.1¢ range resources limited

oppies at a bargin, page-30

  1. 4,941 Posts.
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    Lets say the heads go to the following price by October. Have a look at the reward comparisons based on an approx $1 close on the fully paids today and 35 cents for the options:

    Shareprice Fully paids profit % Options profit %
    $1.30 +30% -16.6%
    $1.40 +40% +16.6%
    $1.50 +50% +42.8%
    $1.55 +55% +57%
    $1.60 +60% +71%
    $1.70 +70% +100%
    $2.00 +100% +214%

    Yes, the profit on the options will be much larger if the shareprice goes to $2, but in order for the options to outdo the profit on the options, the shareprice will need to be at approx $1.55 by october. But what about the risks:

    hareprice Fully paids loss% Options loss%
    $0.90 -10% -100%
    $0.80 -20% -100%
    $0.70 -30% -100%
    $0.60 -40% -100%
    $0.50 -50% -100%

    The risk/reward situation is far more in favour of the fully paids at this stage.
 
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