Hi all; first-time poster, recent buyer and long-time lurker here,
The groundswell in investor confidence has accelerated recently and that has been reflected not only by the increased share price but also in the online discussions had here. If we are then to take for granted (and I don't mean that with the usual negative connotations afforded by the saying) that the company will continue to deliver rapid success, it surprises me that more discussion is not focused towards the comparison between investment in the options and ordinary shares. I don't pretend to ignore the risks and opportunity costs associated with investment in the options; rather, I believe that if it is the assessment of most investors that share price will exceed ~$0.04 within a year, the associated risks and opportunity costs are surely mitigated. For example; I conducted a brief comparison between DW8's share price ($0.018) and option price ($0.010) on 25/6/2020 for a $500 investment (ignoring expiry date, dividend payouts and volatility; all of which favour an investment in shares instead of options). In the context of the example given (which still approximately represents the price difference in the days since), I believe it could reasonably be concluded that the options were more profitable (at least via future conversion to shares; which is the main determinant for future option price anyway, if resale is preferable) for investors with a marginally higher risk tolerance if it was the opinion of the investor that the share price would reach $0.034 (rounded) before expiry. Considering that the most recent share price estimates on this forum for even one more year of trading are in significant excess of that target,
it surprises me that the trading volume of DW8's options are so low relative to that of its shares. Please let me know if I am missing something or if my calculations are off; I don't care to be right on any of this and I'm not an expert by any means, I simply want to get the conversation going. Keeping each other well-informed is better for all of us, seeing as almost all of us are in it for the long haul.
Steady growth, strong leadership and open communication always wins.
So here's to the bright future. Cheers.
1.1: Calculations (Inputs are Shaded, Decimal Points are Reduced Independently of one another):
1.2: Calculations with Formulae (Inputs are Shaded, Decimal Points are Reduced Independently of one another):
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