I'm interested to hear others thoughts on this. After completing...

I'm interested to hear others thoughts on this.

After completing hours of research on Peninsula and being very confident with the long term outlook I purchased shares a while back and have contiually been purchasing more parcels.

After doing more research on options, I figure I may aswell sell my PEN holding and purchase the same amount in the PENOA options giving me greater exposure.

Generally the percentage gains on options are greater than the heads when the price is moving. But when comparing the PEN share price with PENOA, PEN has had greater percentage gains. I think this has something to do with the options still having over 2 years to maturity.

If the shares are at 10 cents in 2012 you would have made 112% on todays price. If you purcahse the options at 3 cents in 2012 they should be trading at at least 7 cents (assuming no premium) giving a gain of 133%.

I know i have to consider my situation when making this decision, but additional risk for the minimal extra return. . is it really worth it??

If the share price goes much higher than 10 cents say 20 cents then the options would largely outperform the heads, but is this likley?

Based on broker reports and the additional reserves they are looking to confirm over the next two years i think there is a reasonable chance this could occur.

Hmmm I think I have just answered my own question.