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7,874 Posts.
109
12/01/11
19:56
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that's not quite right nokk.
remembering that 10c is the exercise price and if you intend to exercise them....see below.
if you buy the options at say 3c today you only need the heads to go to 13c to be in the money or you can trade them.
so if you think the heads are going to go higher than 13c the oppies are a good buy.
so if you cant afford the heads at this time its better buy the option now and pay the exercise price latter when you can.
hope that makes sense.
cheers
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