I do see your point SW, but my point is were do you stop in terms of leverage. I could use my entire investment capital and take out a margin loan, to buy CTPO through CFD's (perhaps not possible but you get the point), wow imagine how many i could be holding then, but what happens in the event of it all going belly up. I have learnt the hard way to not get attached to a stock and therefore i'm willing to look at the very likely downside also and put strategies in place to prevent this and preserve capital so as to fight another day.
The 100,000 is not the actual amount i hold, i have left that out for HC disclosure purposes, but in essence i would only be comfortable holding 100,000 CTPO taking into consideration the risks associated and considering portfolio size and risk management etc. On the other hand i would be happy to hold 100,000 CTP albeit for a slightly larger investment cost. I get the same amount of leverage to the upside and in the event that the SP does move much higher my $4,400 extra outlay leverages also as i cant see the current 4.4cents gap remaining once in the money.
CTP Price at posting:
57.5¢ Sentiment: LT Buy Disclosure: Held
