VIL 0.00% 1.6¢ verus investments limited

Just some thoughts on a strategy for the options to show there...

  1. 53 Posts.
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    Just some thoughts on a strategy for the options to show there is value in buying them. IMHO.

    buy 250,000 heads at $0.05 for $12,500.
    buy 1,000,000 options at $0.01 for $10,000.

    Scenario 1
    If FP was a duster you'd probably be left with 250,000 FPO that may or may not ever recoup your total costs. You'd need the share price to go to $0.09 to break even.

    Scenario 2
    If time expired but FP proved commercial and they then bring further wells into production. You'd again lose the options, but would have 250,000 FPO that would only need to hit $0.09 for you to recoup your investment and then would start to make a profit.

    Scenario 3
    FP1 is commercial and the share price goes above $0.11 and the options are then worth exercising. For example FPO hit $0.15 and options hit $0.05. Your FPO are now worth $30,000 (gain of 300%) and options are now worth $50,000 (gain of 500%). If FPO hit $0.20 then the gain on FPO is 400% and options 1000%.


    These calculations and thoughts are only back of an envelope stuff as Melua would say.
    So please correct me if I'm wrong.

    I just wanted to show that I think there is value in the options.

    Cheer
    WizJP

    DYOR
    These are my own thoughts and not investment advice.


 
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