RMX 0.00% 0.1¢ red mountain mining limited

rmxo, page-38

  1. 34,916 Posts.
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    Even the RMX SP at 0.03 anytime in the next 6 months, RMXO is worth 0.03 - 0.015 = 0.015. What RMXOA worth? 0.03 - 0.03 = 0.

    I can see RMXO (0.015) is worth more then the current price RIGHT NOW.
    And it may keep going up.

    Can you guarantee RMXOA (0.030) will be 100% double then the current price in future?


    There are no guarantees whatsoever with either RMXO or RMXOA. I can't see RMX staying at its current marketcap no matter what happens. The marketcap is in no mans land. If the market decides they don't like the results in the next 6 months or thinks that it is still a while away from turning that potential into real cash then it may drop back to 1.5c (which is still 5 times its recent lows). As the RMXO only have 5 months left in them you could be left out of pocket. With RMXOA you have time on your side if things don't happen as planned within the next 6 months. It might, for example, take 2 years to realise the goals in which case there is ample time for RMXOA to get in the money.

    On the other hand if the market decides it does like these results and RMX flies upwards from here, then obviously RMXO is the better bet as it is already trading at a discount. Which one is better depends on the outcomes, I'm not saying one is better than the other, it depends on your risk profile and your investment goals. For me, RMXO is a greater risk but provides better short-term reward whereas RMXOA is slightly lesser risk but the potential reward is also lesser and longer-term.

    Options are risky as it is, so I personally prefer to take the safer approach with a longer-term view. It also means, at .6c that I can lay claim to the same number of shares with only a quarter of the investment outlaid at this stage compared to if I bought RMX (at 2.4c). I'm happy to use that money elsewhere for the time being, taking a more medium term investment approach. You are obviously looking at short-term gains and on that basis buying RMXO is fair enough.

    I hope it works for you but never count anything as guaranteed, especially at this spec end of town, especially when dealing with options.
 
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