AUL 0.00% 28.5¢ austar gold limited

ASX the options give you more exposure for your money ie you can...

  1. 67 Posts.
    ASX the options give you more exposure for your money ie you can buy 100 000 options for $14 000 where as that would only buy you about 45 000 shares at 30 cents.

    If you have a company that has a positive outlook options can be good value.
    Say the share price rose up to $1. You would expect the options to be 75c.
    If you paid 14 c for those options you have increased your money 61c, which is about 4.3 times. On the other hand the shares have increased 70 cents which is 2.3 times.

    Therefore a $10 000 investment in options would be worth about $53 000 and in shares it would be about $33 000.

    Of course with a company with a negative outlook they can be bad. Only hold options in companies you have faith in.
 
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