options, page-11

maryhada

PXGOA's are exercisable at 25 cents any time before 30 November 2014.

They are at the crossroads at the moment.

If you believe PXG shares will go from 32 cents to say 48 cents it will be a 50% increase in one's capital.

At the same time PXGOA's will go from 12 cents to about 26 cents for over a 100% increase.

Conversely, if PXG shares go from 32 cents to 24 cents it will be a 25% decrease.

In this case PXGOA's will go from 12 cents to possibly 6 cents for a 100% decrease.

It's all about risk/reward. The higher PXG's share price goes the higher the leverage on the PXGOA's.

Disclosure: I hold PXGOA's.