Australia's largest stock trading and investment forum Australia's #1 stock forum

TVN

Click for more information

6.00%

4.7¢ tivan limited

Good Logic Jinster... Here are some numbers for others to make a...

First 56 Last

Share
Profile

Follow
Rhino1963

2,800 Posts.

2469

04/01/17

12:28

Post #: 21671573
Share

Originally posted by Jinster ↑

If all you have is $10k, for example, then by spending it all on options, you have no doubt leveraged for greatest gains that's possible from your $10k, but you have also proportionally increased your risk.

If you only use a proportion of that $10k to buy options so that the remainder can cover for conversion to heads should your options fall into trouble, then you have not leveraged at all. The only benefit here would then be cashflow.

And if you buy options with a strike price way above the current SP at a price anything higher than infinitesimally above zero, your risk/reward ratio vs buying heads at current prices would go into inverse.

So I maintain that at the current SP, the options are worth exactly one billionth of a cent.

Expand

Good Logic Jinster...

Here are some numbers for others to make a comparison

Assume $10,000 to invest
Oppies @ $0.04 = 250,000
Heads @ $0.14 = 71,428

Outcomes at various projected prices for $10,000 invested;
(oppies are net of $0.20 conversion to heads)

$0.50
Oppies = $75,000 (7.5 bags)
Heads = $35,714 (3.5 bags)

$1.00
Oppies = $200,000 (20 bags)
Heads = $71,428 (7 bags)

This is by no means investment advice just some sample calculations.
DYOR and seek advice if you do not understand the risks.

GLTAH

TNG Price at posting: 14.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

RKT

RocketDNA wins $350K contract to supply mine sits with autonomous security 'PatrolBots'

BAS

Bass completes successful testing work at Kiwi-1, showing higher-than-expected condensate yields

TAT

Tartana Minerals firms up producer status with recent 150tn shipment of copper sulphate to the NT

EMD

Emyria jumps 10% on 'interim' success treating PTSD patients with MDMA

IMU

Imugene's azer-cel trial sees tumours temporarily disappear in 3 of 10 patients

First 56 Last

Add TVN (ASX) to my watchlist

(20min delay)
Last 4.7¢		Change -0.003(6.00%)		Mkt cap ! $82.91M

Open	High	Low	Value	Volume
5.0¢	5.1¢	4.7¢	$29.63K	604.7K

Buyers (Bids)

No.	Vol.	Price($)
2	189867	4.7¢

Sellers (Offers)

Price($)	Vol.	No.
4.9¢	23498	2

View Market Depth

No.	Vol.	Price($)
2	189867	0.047
6	489792	0.046
15	1129069	0.045
2	95608	0.043
1	100000	0.042

Price($)	Vol.	No.
0.049	23498	2
0.050	458170	2
0.051	87149	2
0.055	82510	1
0.057	25000	1

Last trade - 11.56am 02/09/2024 (20 minute delay)

TVN (ASX) Chart

SPONSORED BY