oppies cleaned out, page-3

captain_salty...

Beg to differ...

Usng your prices.

Outlay for buying 100,000 shares = $18,000

Outlay buying 100,000 options = $1,900

Difference = $16,100 in your pocket to put towards other investments for 6 weeks!

Actual example...

Buy CAZ today (35,000 shares @ 45.5c) = $16,000 (approx)

Sell CAZ today (35,000 shares @ 78c) = $27,300

Profit = $11,300

I guess the decision to buy options or shares comes down to the view of the holder...for me, keeping my account as liquid as possible by deferring any longer term commitments via options, is a much more attractive proposition.

There is however another consideration...$1,900 for the options effectivley limits your downside exposure.

If for example, something went wrong with the IPO...these things happen...you stand to lose a lot more holding $18,000 worth of stock than you do with $1,900 worth of options.

If thew shares fell back to recent lows (say 12c) the 100,000 shares would be worth just $12,000, representing a loss of $6,000...whilst the options, arguably still likely to be trading in the fractions of cents (say .002) would still be worth $200, representing a loss of just $1,700

Horse for courses.

Cheers!