Yes you have a point. Even using a much lower target, you still might get a slightly better return from the options but in this case, the better liquidity in the shares might make them more attractive. E.g. I considered a 30c near term target using your starting point of 15c and 4.9c. At 30c, the shares gain 100%. The options would be in the money by 2c and we can only estimate what the premium might be. If 8c, they might trade at 10c for a 104% profit. However if they trade with a 10c premium at 12c, the profit becomes 145%. The higher the sp target someone might have, the more attractive the options, but I like to take a bit of profit along the way so for someone like me, the shares might suit better. E.g. if the shares triple, I might consider selling one third to go free carried. I'll make that decision at the time depending on what's happening at that time. The tax man is going to love me this year so I'll have no choice but to take profits on something at some stage to meet that unavoidable liability.
LCK Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
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