Hi Megagem & Defabstar,Thanks for the comments. The oppies have...

Hi Megagem & Defabstar,

Thanks for the comments. The oppies have been trading a little less than the 3 cents behind the sp for much of the last few weeks so they are a bit more expensive than the share?

I was completely wrong on the gearing. I have just run a simple spreadsheet and it shows that you can buy options to the same value as you would spend on shares, convert the number of option equivalent to the shares you could have bought, sell the balance of the options to cover the conversion cost and leave a profit with the net position still showing the profit from gearing. It was just counter-intuitive to me, for some reason, don't know why.

I am right that the gearing is much reduced from the point of entry for me, but it is stil worth it.

I don't know if the spread sheet formatting will survive but here it is for spending 10k on shares or options at 7 and 10 cents respectively:

Options Shares
Price $0.07 $0.10
stake $10,000.00 $10,000.00
holding 142857 100000
Future price 0.12 0.15
Future value $17,142.86 $15,000.00
Convert 100k 100000 n/a
Cost $3,000.00 n/a
Sell balance 42857 n/a
Proceeds $5,142.84 n/a
Profit $2,142.84 n/a
Final position $17,142.84 $15,000
% gain 71% 50%

Regards,

Keith.