Hi newtothe game.Just to add to your calcs. U say if the heads...

Hi newtothe game.

Just to add to your calcs. U say if the heads drop to 10cents then the paper loss on the oppies is 1k, but what happens if they drop to below 10cents, 9.9cents for example. The options expire worthless and the paper loss is 3.2K (initial investement of 10000x3.2), versus 2.6K (10000x2.6cents) for the shares. Dont get me wrong, not saying the oppies are a bad idea, i believe quite the opposite. Just thought it important to point out that to the newbies that if the heads close under 10cents they have "done there dough" with the oppies.

Buying the oppies at 3.2cents, is really saying to break even come expire date, the heads price needs to be 13.2cents. Anything above that and your ahead. No point paying 3.2cents for the right to buy at 10cents, if you can buy on market for 10cents. Correct?

I do agree with other posters though, i expect the head to be well above 13.2cents come expire date.

cheers.